What is B Corp status and how could it help your financial planning business?

Sustainability is a hot topic in business right now. At Melo, we’re working with several firms that either have B Corp status or are working towards achieving it.

But what exactly does it mean to be a B Corporation (aka, a “B Corp”) and how could your financial planning business become one? What’s more, is it worth the effort?

Read on to find out.

B Corp status demonstrates your values as a business

According to B Lab – the nonprofit organisation that oversees the certification process for B Corporations – B Corps are companies verified to “meet high standards of social and environmental performance, transparency and accountability.”

However, there’s more to it than making sure you offset your firm’s carbon footprint. Our CEO, Victoria Hicks says, “It’s about how you treat your staff, how you develop people, and how you engage with the local community. Every decision needs to be made for the benefit of all key stakeholders. B Corp status is more than just a badge anybody can get. You need to show that it’s the essence of your business and that these values filter through everything you do.”

5 cool business benefits of becoming a B Corp

Recent research by B Lab has shown that B Corps outperform their UK peers in several important ways:

1. Faster growth in turnover and higher expectations for future progression.
2. Higher levels of employee retention, engagement and diversity.
3. More robust governance processes.
4. Greater focus on civic and community engagement.
5. More innovation.

They also found that certifying as a B Corp can improve impact, collaboration, networking and the ability to articulate the company’s mission externally.

So, if you want to scale your firm and look after your best talent while also doing your bit for the environment and giving back to your community, you might want to check out what it takes to become a B Corp…

Your step-by-step guide to achieving B Corp status

Certifying as a B Corp is not for the faint-hearted. It’s a rigorous process that takes considerable time and commitment.

Yet, as you can see above, the benefits can be well worth the effort. So, here’s a handy step-by-step overview of what’s involved:

• Meet the eligibility criteria – Most for-profit companies that have been operating for 12 months or more can become a B Corp. There may be additional requirements for certain businesses, such as startups and public companies.
• Submit your B Impact Assessment (BIA) – This is a digital tool that is designed to measure and evaluate your firm’s social and environmental performance. There are five impact areas: environment, workers, customers, community, and governance. You must score 80+ to certify. You’ll also need to complete the Disclosure Questionnaire as part of your BIA. This shows your commitment to being transparent about any issues that may be sensitive or problematic.
• Pay your fees – You’ll need to pay a submission and verification fee during the certification process and then an annual fee as a member of the B Corp community. The amount will depend on your annual revenue. Some business owners may be eligible for “equity pricing” (a 40% discount on the annual fee).
• Meet the B Corp legal requirements – This means changing your company’s legal structure and governing documents, to show your commitment to being a responsible business. By doing this you could earn up to 10 points on your BIA.
• Complete the review process – Once you’ve submitted your BIA and Disclosure Questionnaire, your application will go through a two-stage review process – evaluation, then verification. Each stage typically takes between 1 and 3 months. There is also likely to be a “queuing” time of up to three months before your submission is evaluated and verified.
• Certification – If you achieve a score of 80 or more, your firm will be officially declared as a B Corp.

Once you’re qualified, you’ll also be expected to submit an annual impact report to show that you’re living up to your responsibility as a B Corp.

Phew! We did warn you that becoming a B Corp takes time and effort.

But in our experience of working with B Corps and those going through the certification process, it’s also extremely rewarding and a great feather in the cap when you’re going on the growth journey.

Get in touch

If you’d like to find out more about how the Melo team can support you on your journey towards B Corp status, we’d love to hear from you.

Drop us an email at hello@melo.co.uk or call us on 0113 4656 111.