What is the difference between a Certified B Corp and a Pending B Corp?
Pending B Corps are new companies with under one year in operation (must have at least one full-time person in the company or the first formal purchase contract from a significant supplier). . They must complete a B Impact Assessment but are not required to reach a minimum score, nor go through the verification process.
They must modify their legal framework from an early stage (more information on the legal requirement here; this is a necessary condition to be eligible for Pending B Corp status).
Pending B Corp status is valid for a non-renewable one year term, after which companies have access to the full B Corp Certification.
B Corp Certification requires high commitment and dedication throughout the process, in which companies need to consolidate practices, policies and processes in order to complete them successfully. It would be very difficult for companies with less than one year in operation to be able to certify normally, as in most cases the operation doesn’t have the necessary level of maturity. Consequently, B Lab decided to create the Pending B Corp status as a way to include companies that wish to have impact at their core from an early stage, and allow them to be in the certification path.
They must modify their legal framework from an early stage (more information on the legal requirement here; this is a necessary condition to be eligible for Pending B Corp status).
Pending B Corp status is valid for a non-renewable one year term, after which companies have access to the full B Corp Certification.
B Corp Certification requires high commitment and dedication throughout the process, in which companies need to consolidate practices, policies and processes in order to complete them successfully. It would be very difficult for companies with less than one year in operation to be able to certify normally, as in most cases the operation doesn’t have the necessary level of maturity. Consequently, B Lab decided to create the Pending B Corp status as a way to include companies that wish to have impact at their core from an early stage, and allow them to be in the certification path.
Those companies that have a clear purpose from the beginning obtain the Pending B Corp status as an opportunity to stand out.
Steps for companies or undertakings with
less than 12 months of operation
Companies or ventures with less than 12 months of operations can obtain the Pending Company B Seal valid for 1 (one) year without the possibility of renewal, while they await the Company B certification.
The operation of the company is considered from when it makes a first purchase from a significant supplier and / or since it has a person working full time for the business (the legal incorporation date of the company is not considered in this case).
Those who obtain this seal can use the Company B Pending logo, which allows you to communicate to the community that your company or venture is on the way to being a Certified Company B and therefore, that it seeks to be part of the community of companies with the highest level of internationally recognized standards.
To obtain the certification of Company B, it is necessary to obtain a minimum score of 80 out of 200 points in the Impact Evaluation B. This evaluation measures the practices and policies of the company during the last year of operation and not on what is eventually to be implemented in the future.
To obtain the Pending Company B Seal, a company or venture must:
1. Know the legal requirements to register as a B Company and modify its statutes according to those requirements, according to the structure that your company has. (See Modify statutes and / or legal figure).
The benefits of legal requirements are:
Provide legal protection to directors and officers by considering the benefits of all stakeholders, not just investors, when making decisions.
Create additional rights for investors to maintain directors and officers who are responsible for maintaining these interests.
Limit these extended rights exclusively to investors.
2. Carry out the Impact Assessment B that will measure the social and / or environmental impact that the company generates through its business and operations.
3. Sign the Term Sheet for Companies with the Company B Pending Seal that includes the acceptance of the limited rights to intellectual property and limited access to the support and services of Sistema B during the term.
4. Pay the amount of 500 USD corresponding to the Pending Company B Seal.
Yes. If your company or enterprise has been in operation for 12 months (regardless of when they obtained the Pending B Seal), you can obtain the certification of Company B. For this you must enter the certification process and complete all the required steps .
In case of obtaining the Company B certification, the corresponding payment must be made, even when the payment of the Company B Pending Seal has been made
If, at the end of the term, Impact Evaluation B is updated and its score is less than 80 points, an improvement stage is entered where it is sought to achieve the minimum score and thus be able to advance in the certification process.
