What does the Assessment cover

The Assessment comprehensively covers the impact of a business on all of its stakeholders, including its workers, suppliers, community, and the environment. The Assessment also captures best practices regarding mission, measurement, and governance. The last, heavily weighted, portion of the Assessment identifies the company’s specific “Impact Business Models,” which include the targeted, formal focus on a benefiting a particular stakeholder through products and services or internal practices.

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How is the Assessment scored

The Assessment is scored out of 200 possible points. The weightings of each question and section depend upon the specific “Assessment track” — determined by industry, size, and geography — of the business taking the Assessment. Points are received for every positive answer to a question and points are never lost. In certain sections points are rewarded for calculations and combinations of a number of different questions. So, while certain questions may not be “weighted” on their own, they contribute to the overall score. The Assessment is scored automatically and in real time so that at the conclusion of the Assessment it is immediately possible to review the results.

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Why is the qualifying bar 80 points to become a B Corporation

Setting this threshold is admittedly a work in progress, but here is how the Standards Council arrived at 80.

Since each impact area (ie. Workers, Community, or Environment) is worth roughly 40 points, achieving 80 points total would mean that the company has to excel in multiple areas to achieve B Corp Certification.

Philosophically, the Standards Council aims to recognize those companies as B Corporations that create positive impact in multiple impact areas, instead of just one. As an example, a company that achieves 80 points is more likely to be one that produces chairs from recycled metals AND pays fair wages to its employees (amongst many other practices). In this way, the Assessment is asking businesses who might only be using recycled metals in manufacturing but not necessarily creating positive impact elsewhere to aim higher while simultaneously acknowledging that this one practice alone is creating positive impact.

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What are stakeholders? Why do they matter

Stakeholders are the individuals that are most closely affected by a business's activities. These may include workers, customers, suppliers, shareholders, community members and others. All of these constituencies contribute to the success of a business and/or are affected by the business. Research shows that companies that engage with their stakeholders tend to be more successful in the long term. We embrace a stakeholder model of business, and the BIA is a tool to help companies assess their impact on different stakeholder groups.

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Our company does not have suppliers. How should we answer the questions about suppliers

Suppliers may include both companies that provide durable goods (e.g. your raw materials) as well service providers (e.g. your accounting firm). If in the rare instance, your company does not procure any goods or services, please leave the questions blank.

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Who is B Lab

B Lab is the non-profit organization behind the B Impact Assessment.

B Lab is a 501(c)3 nonprofit that serves a global movement of entrepreneurs using the power of business to solve social and environmental problems.

B Lab envisions that all businesses in the world will measure and manage their impact as readily as they do profitability. Read more about how B Lab hopes to achieve this vision.

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Our company is a holding company that has multiple subsidiaries or franchisees. How should we approach the Assessment

We first recommend answering the Assessment as one entity; in this instance, please select answer options that apply to a majority of your subsidiaries/franchisees/operations.

The most accurate way to capture your business is by completing separate Assessments for each subsidiary. Please contact B Lab Staff to determine whether this is appropriate for your business: (+1) 610-293-0299.

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Our company is a subsidiary or a franchise of a larger business. How should we answer the Assessment

We recommend answering questions so that they pertain specifically to your subsidiary or franchise.

We strongly recommend that you discuss your company’s structure directly with a B Lab Staff member: (+1) 610-293-0299.

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We have operations in two or more countries. How should I answer questions on the Assessment

Please select the country where the majority of your employees operate. If majority of your employees operate in Cambodia, please answer the questions as they pertain to those employees only.

We strongly recommend that you review this section in more detail directly with a B Lab Staff member: (+1) 610-293-0299.

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My company is entirely virtual. How should I answer the Assessment

The part that is trickiest for virtual businesses is the Environment section. Majority of the topics assessed in the Environment section such as energy usage or travel still apply for virtual businesses. However, it may be difficult to know if your company’s employees practice those items in their homes or shared office spaces. The intent is to assess the impact of the space your employees use regardless of whether they are company sanctioned or not.

We typically recommend answering affirmative to questions that are true for a majority of your employees. For example, if a majority of your employees recycle at home, please select “Yes” for that question.

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