10 Reasons Companies Fail to Achieve B Corp Certification (and How to Overcome Them)
Achieving B Corp certification is a rigorous process that requires companies to meet high standards in governance, social and environmental performance, and transparency. While many companies set out with the best intentions, there are several common reasons why they may fail to achieve certification. Below are the key reasons companies fall short—and how to overcome these challenges.
1. Lack of Leadership Commitment to the Process
Strong leadership commitment is essential for B Corp certification. Without active engagement from top leadership, the process can stall, and the necessary resources may not be allocated. B Corp certification often requires legal, operational, and cultural changes, all of which need the support of leadership to move forward.
How to Overcome It: Leadership must be fully educated on the long-term value of certification, including brand loyalty, employee engagement, and market differentiation. Leaders should set clear goals, allocate resources, and establish accountability throughout the certification journey.
2. Inability to Meet the B Corp Legal Requirement
Becoming a B Corp involves making legal changes to a company’s governing documents, requiring it to consider all stakeholders, not just shareholders. Companies that fail to meet this requirement often face resistance from shareholders or leadership focused solely on financial returns.
How to Overcome It: Start by educating stakeholders about the benefits of a stakeholder-oriented approach. Work with legal experts familiar with B Corp requirements to make the necessary governance changes and address any concerns early in the process.
3. Underestimating the Time and Financial Resources Required
The B Corp certification process can be both time-consuming and resource-intensive. Many companies underestimate the time required for data collection, operational changes, and stakeholder engagement, leading to frustration or burnout.
How to Overcome It: Set realistic expectations for how long the process will take and budget for the necessary financial and human resources. Appoint a project manager (and consider hiring a B Corp consultant like LIFT Economy) to ensure deadlines are met and resources are used effectively. Breaking the process into manageable phases can also help maintain momentum and focus.
4. Internal Disorganization and Inability to Gather Data from Key Stakeholders
The certification process involves collecting data from various departments, including HR, operations, and supply chain. Disorganized companies with poor internal communication often struggle to provide the necessary information in a timely and coherent manner.
How to Overcome It: Implement clear systems for data collection and ensure cross-departmental collaboration. Designate a cross-functional team to oversee the process, and use project management tools to track progress. This will help ensure data is collected efficiently and presented in an organized way to B Lab.
5. Involvement with Controversial Industries
Certain industries, such as fossil fuels, fast fashion, or industrial agriculture, face inherent challenges in aligning with the B Corp principles of sustainability and social impact. Companies in these industries (and companies that derive more than a small percentage of their revenue from these industries) may struggle to meet the high standards required for certification.
How to Overcome It: Companies in controversial industries should focus on addressing their most significant impact areas. This could involve overhauling supply chain practices, improving transparency, or investing in sustainable innovation. Understanding industry-specific challenges ahead of time and proactively addressing them can improve the likelihood of certification.
6. Lack of Impact Business Models
For companies without a clear focus on creating positive social or environmental impact, achieving B Corp certification can be challenging. Businesses that primarily focus on maximizing profits without integrating purpose into their core operations may fail to score any points in the Impact Business Models section of the assessment, making it much more difficult to certify.
How to Overcome It: Companies should work to embed social and environmental impact into their business models. This might involve rethinking product design, sourcing materials responsibly, improving employee engagement, or adopting circular economy principles. By making impact part of the company’s DNA, businesses will be better equipped to meet B Corp standards.
7. Overly Optimistic Answers in the Assessment Without Written Proof
Many companies approach the B Impact Assessment with enthusiasm, providing optimistic answers about their social and environmental performance. However, B Lab requires documentation to verify claims, and companies that cannot provide written proof may see their scores drop during the verification process.
How to Overcome It: Answer the assessment questions realistically and ensure all claims are backed by solid documentation, such as policies, certifications, or reports. This will prevent delays during verification and ensure the company’s assessment score accurately reflects its performance.
8. Not Getting Scoping Work Done by B Lab Beforehand
One of the most overlooked steps in the B Corp process is getting a formal scoping determination from B Lab (especially for companies with complex business models and in certain industries). Engaging with B Lab early in the process helps companies understand what will be required and identifies potential challenges before they become roadblocks.
How to Overcome It: Work with B Lab to scope out the certification process before diving into the assessment. This can provide valuable insights into areas that need improvement, set clear expectations, and give the company a sense of what resources will be needed. A thorough scoping phase can prevent surprises later in the process.
9. Not Responding to B Lab’s Requests for Information in a Timely Manner
During the verification process, B Lab may request additional information or clarification on specific points in the assessment. Companies that do not respond promptly to these requests risk delays or disqualification.
How to Overcome It: Assign a dedicated team or individual to act as the liaison with B Lab, ensuring that any requests for additional information are handled quickly and efficiently. Staying responsive and organized during this phase will keep the process moving forward and prevent unnecessary delays.
10. Frustration, Overwhelm, and Running Out of Steam
The B Corp certification process can be overwhelming, especially for smaller companies or those with limited resources. Many businesses start strong but lose momentum as they encounter unexpected challenges, such as complex data requirements or legal hurdles. Over time, this frustration can lead to burnout, causing companies to abandon the process.
How to Overcome It: Companies should break the certification process into smaller, manageable steps and set realistic timelines to avoid overwhelm. Regular check-ins, progress milestones, and celebrating small wins along the way can keep teams motivated. Engaging a B Corp consultant (like LIFT Economy!) to help guide the process can also provide valuable support and expertise.
Final Thoughts
Achieving B Corp certification is a challenging but rewarding journey that requires careful planning, strong leadership, and a commitment to long-term impact. Companies that understand and address the common obstacles—ranging from legal requirements to data collection and stakeholder engagement—are more likely to succeed in becoming B Corps. By approaching the process with patience, transparency, and a clear plan, businesses can position themselves to thrive as part of a growing community of companies dedicated to balancing profit with purpose.
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