B-Corp Business Issues - Essay Example

To become a B-Corp, there exists the whole certification process named “B-Corp Certification”. This certification implies the process of validating the company’s social and environmental performance which is measured through the special impact assessment framework (Bcorporation.net, n.d.). The process of certification has three stages: meet performance requirements; meet legal requirements; and make it official (Bcorporation.net, n.d.). The company’s performance is assessed based on the overall impact it has on the stakeholders. This assessment is lasting for 1-3 hours, depending on the company’s size, location, and sector in which it operates. Then, one of the B Lab staff members appoints an Assessment Review session to clarify questions and enable the company to refine the answers (Bcorporation.net, n.d.). In case the company’s score is between 80-200 points, the B Corp team members provide the applicant with information on how to submit supporting documentation. When the Assessment review stage is completed, the company has to complete Disclosure Questionnaire, which informs about any sensitive practices, sanctions, and fines related to this company or its partners (Bcorporation.net, n.d.). While the majority of such disclosures are not essential, there are cases when there are material disclosures that require more attention. In this case, the company’s management will need to provide more information on this issue. The decision about acceptance and membership/participation of the company in the B Corp community is made by the B Lab’s Board of Directors and Standards Advisory Council (Bcorporation.net, n.d.). The B Corp Certification process should be completed every two years.

As it has been already mentioned the B Corp community is comprised of more than 1000 businesses. These companies operate in 60 different industries, including accounting services; agricultural services; apparel, footwear, and accessories; architecture, design, and planning; automotive sales and repair; books and media; building materials; catering and meetings; contractors and builders; credit provider; education and training services; equity investment; facilities, ground, and maintenance; film and music production; fine arts; etc. (Bcorporation.net, n.d.). While many different companies are operating in various industries, the majority of the companies provide services. Even though several businesses are classified as those operating in industrial manufacturing, they are very small compared to large manufacturing companies. The dominant share of the B Corp businesses is small/family businesses with the average number of employees not exceeding 35.

The community of B-Corp has both strengths and weaknesses which vary depending on the size and the industry in which the company operates. Thus, for example, for small and service-oriented firms the key strength is that their activity has nothing to do with significant environmental impact as these companies do not manufacture anything. In this case, it is easier for them to pass the certification process of B-Corp. For large businesses involved in heavy manufacturing, assessment at B-Corp can be challenging to complete and maintain as the manufacturing industry and the scales of the business have a huge impact on the environment. On the other hand, large businesses have more resources and money to contribute something to the improvement of the community’s life. Small firms have much more limited capabilities and therefore their achievements can be less significant compared to those of large firms.

The NCEO is a “nonprofit membership and research organization that was founded in 1981 to provide the most objective and reliable information possible on employee ownership at the most affordable price possible” (Nceo.org, n.d., n.p.). The key mission of this organization is to provide unbiased and accurate information about employee ownership. This organization has more than 3000 members, represented by consultants, academics, and employee ownership companies (Nceo.org, n.d.). The main category of members relates to the companies that are either considering a plan of employee ownership introduction or working on an existing plan. The NCEO also provides training, introductory consulting, research, and other services (Nceo.org, n.d., n.p.).

It is quite difficult to compare these two organizations as both operate in different spheres and are not competing because of the different nature of these organizations. While the NCEO provides information about employee ownership and is focused only on a limited number of shareholders, B-Corp provides a more extensive impact on both society and the environment. The activity of the NCEO is limited to the employees and employee ownership companies, while B-Corp covers businesses of different corporate structures but those, which adjust their strategies to sustainable development. While comparing these two organizations, it is worth noting that B-Corp is comprised of small family businesses, while the NCEO’s membership is comprised of large and well-established organizations which care about their employees.