“To B or not to B” is the question that ethically minded companies are increasingly asking themselves as organizations across the globe begin to look beyond their bottom line. These businesses are part of the growing B Corp movement, a collection of companies attempting to balance profit with purpose.
B Corps are to business what fair trade is to coffee — and from forestry to finance, thousands of companies from across the globe are joining the movement. It’s not just small companies and startups that are getting in on the action, either. A growing collection of big brands with household names like Patagonia, Ben & Jerry’s, and Allbirds are also among the A-List of B Corp companies.
Before we go any further, it might be helpful to define what a B Corp is. Put simply, B Corps are businesses that put as much emphasis on their social and environmental impact as they do their bottom line.
To achieve B Corp certification, companies have to be assessed by B Lab. This not-for-profit verifies that they reach the highest social and environmental responsibility standards, public transparency, and accountability. Certification is not easy to get, which is why it’s so meaningful to the thousands of companies across the globe that have achieved it to date.
These businesses are working toward harnessing their power to achieve a more inclusive and sustainable economy, and their numbers continue to grow and resonate throughout the global economy.
Whether you’re shopping for ice cream or exploring investment opportunities, you’ve likely crossed parts with this growing number of ethical enterprises.
So, who are the biggest B Corps? Where in the world are we most likely to find them? And what sectors are the most successful?
We used the B Corp directory from the data world, examining all certified companies to determine the world’s top ethical businesses. The overall rankings took into account various factors, including governance, workers, community, environment, and customers.
The first B Corps achieved certification in the U.S. in 2007. Fast-forward to today, and there are 3,596 verified organizations worldwide in 76 different countries. Though they’ve grown into a global movement, the majority of B Corps are still overwhelmingly American. Indeed, 13,346 (37.2%) of the world’s certified companies are based in the United States, with big brands like Patagonia and Ben & Jerry’s flying the flag.
Second-placed in our global ranking of ethical enterprises is the UK (10.3%), where brands like JoJo Maman Bebe, Innocent Drinks, Abel & Cole, and the Guardian Media Group have joined the 370 B Corps that have achieved certification since the initiative first arrived in 2015.
Rounding out the rest of the top five are Canada (8%), Australia (7.5%), and Brazil (4.4%), who combined account for more than two-thirds (67.4%) of the world’s total B Corps.
We analyzed companies to determine the most reliable, successful, and low-impact brands using the B Corp directory. Considering factors such as social and ethical performance, we created a weighted ranking of the world’s top 20 companies — an A-List of B Corps.
An integrated architecture, engineering, building, and renewable energy firm, South Mountain Company, Inc., tops the global B Corp ranking with a score of 183/200. Located on Martha’s Vineyard in Massachusetts, the 35-strong team is a mission-driven, worker-owned cooperative that works to support each other, strengthen their community, and cultivate positive change. First certified in 2008, the company has gone from strength to strength, increasing its overall impact score by a third (33.3%).
Second place in our B Corp ranking is Dr Bronner’s (score of 177.8). This family-owned-and-run soapmaking company can trace its roots back to 1948. Decades later, it’s become the top-selling brand of organic and fair trade bodycare in the U.S., making responsible products and dedicating its profits to help make the world a better place.
The final place on our B Corp podium goes to Beneficial State Bank (score of 176), a unique California-based financial organization proving that money can be a force for good. Certified in September 2013, it balances traditional banking practices with a mission to serve the community, not to profit from them.
B Corps cover the full spectrum of business from electronics and real estate to entertainment, education, and even a whole host of industries that don’t begin with the letter “E.” But which industries are the most ethical?
The gold medal for good business goes to the forest management industry, which lays claim to the highest average B Corp score of any sector (111.2). Credit providers (110.4) claimed second place on our ranking, followed by environmental remediation (104.3) in third.
The food and drink industry boasts the highest number of certified businesses of any sector, with companies like socially conscious ice cream giants Ben & Jerry’s accounting for 12.4% of all B Corps. Surprisingly, the industry that accounts for the second-largest B Corp business is IT software and services (7%). Followed by management and financial consulting (6.2%) and marketing and communications services (5.9%), the results represent a growing trend for professional service providers looking to balance their profits with purpose.
Elsewhere consumer industries like apparel, footwear and accessories are well represented, contributing 144 of the world’s B Corps, alongside home and personal care (199) and housewares, home furnishings, and accessories (63). While at the other end of the spectrum, the product rating industry is the least represented sector with just a single B Corp registered to date.
We know the most ethical industries, but which B Corps are leading the pack in the world’s most sustainable sectors? The ranking is led by organizations like Portland-based EFM (136.2/200), standing out as the top dog in the forest management sector. The UK’s carbon reduction leader, ClimateCare (143.8/200), is leading the pack in the environmental industry.
However, perhaps most interesting are the industry averages, which show us which sectors have the top-performing B Corps. It’s no surprise to see more traditional ethical industries like forest management (111.2), environmental remediation (104.3), and waste management (102.4) scoring well.
From Alabama to Wyoming, 46 different states are home to certified organizations. From coast to coast, the country is filled with top-performing B Corps ranging from Arctic Solar Ventures Corporation, a renewable energy outfit based in Alaska, to Do Good Well Consulting LLC, a coaching company from Florida.
However, the country’s MVP of B Corps is South Mountain Company, Inc. (183), a Massachusetts architectural firm that was certified in 2008. However, the West Coast claims the second-placed B Corp, thanks to Dr. Bronner’s (177.8), a Californian-based soap-making company that can trace its ethical roots back more than 150 years. Colorado lands third place in our B Corp countdown, with Denver-based real estate developers Urban Green Development, LLC scoring 158.3 on our weighted ranking.
Overall, Eastern B Corps performed slightly better than their Western counterparts, with seven of America’s top 10 organizations hailing from the Atlantic Coast.
There’s a definite buzz around B Corps now, but today’s certified companies owe a lot to those businesses that blazed a trail for the movement more than a decade ago.
In the U.S., the sector’s founding father is Mal Warwick Donordigital, a fundraising and advocacy agency that became the first-ever B Corp back in May 2007. Two years later, Canada joined the world’s B Corp club with Toronto-based fundraising platform FlipGive (February 2009). Then came Chile’s TriCiclos (January 2012), Mexico’s ECHALE (February 2012), and Argentina’s Emprendia (June 2012).
Just as it did following the 2007 economic crisis, the world looks set to embrace ethical enterprise. Now, as then, there’s a growing sense that it’s time for businesses to look beyond the bottom line and balance profits with purpose.
The prestigious B Corp certification is the gold standard for this new wave of conscientious companies. But B Corp status can be challenging to achieve, and businesses must meet rigorous social and environmental performance, accountability, and transparency standards. They also have to pay fees and be periodically audited to ensure that they live up to B Lab’s standards.
While B Corp certification is admirable, it’s not always the best approach for every business. Deciding what structure your business will take can have long-lasting impacts on your organization, so it’s important not to go it alone. That’s why ZenBusiness is here to help. With expert staff and innovative digital tools, we help startups, and large companies organize their business’s logistical, legal, and accounting aspects.
While we don’t currently assist with forming B Corps, ZenBusiness can help you form your own limitied liability company (LLC) or C corporation. We make it easy to create, run, and grow your dream business with tools and guidance to help you every step of the way.
Taking the B Corp directory from data.world, Inc., all certified companies were used to determine the top ethical businesses.
B Corps are declared as meeting the highest standard of social and environmental performance. The overall score takes into account a variety of things including, governance, workers, community, environment, and customers. This score allows us to determine the most ethical companies in the B corp community.
Taking the directory of businesses found on data.world, we added together every country’s B Corp to find each country’s share of B corps.
Using every B Corps overall score, we found the top ethical company in the world.
Using the 1,336 U.S.-based B Corps, the companies were divided into their home states, and then each overall score was used to find the top company in each state.
Taking every B Corp, we divided them into their home country to find which country has the most B Corps.
Using every B Corp, we segmented them into their designated industries and ranked each company from each vertical.
Using every industry from the B Corp Directory, we found the average score for each industry to find the most ethical industry.
Taking all B Corps, we have found the first B Corp certified in each country that is still certified today based on their certification date.
Taking each B Corps certification date, we have found the best year for B Corps.
Source: https://data.world/blab/b-corp-impact-data
Data correct as of March 16, 2021
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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