B Corporations

B Lab was founded in 2006 in Berwyn, Pennsylvania. The three founders had observed that even companies with genuine commitments to social and environmental responsibility had no mechanism to protect those commitments when ownership changed. The "B" stands for beneficial, signaling that certified organizations voluntarily meet standards of transparency, accountability, sustainability, and performance aimed at creating value for all stakeholders, not just shareholders. The first cohort of B Corporations was certified in June 2007 at the BALLE conference at UC Berkeley, when nineteen pioneering companies committed to the process.

To earn certification, a company must complete the B Impact Assessment, scoring at least 80 out of 200 points across five categories covering governance, workers, community, environment, and customers. The company must also modify its legal governing documents to require consideration of stakeholder interests in decision-making, a provision designed to prevent the erosion of social commitments that Gilbert and Houlahan witnessed at AND1. Companies must recertify every three years and pay annual fees based on revenue.

By 2025, more than 9,500 companies across 102 countries and 160 industries had earned certification, including brands such as Patagonia and Ben & Jerry's. B Lab's parallel advocacy work has contributed to the passage of benefit corporation legislation in thirty-seven U.S. states and several countries. The certification has faced criticism from cooperative infrastructure organizations who describe it as "capitalism through certification" and from companies who have questioned whether evolving standards adequately prevent greenwashing.