What is Right for Your Business: Certified BCFG or Certified B Corp?
Both third-party-standards help guide your purpose-driven business. But which is best for your company? Here we discuss some simple differences to help you answer that question.
Deciding between becoming a certified Benefit Corporation or a certified B Lab can be a difficult choice for a business. We sat down with BCFG Co-Founder and Managing Partner, Tom Hering, to get his input on the differences between certifications. Benefit Corporations for Good is proud to be listed alongside B Lab as one of four certifications for the Oregon Benefit Company on the Oregon Secretary of State's website. However, the distinctions between the two companies should not be ignored when deciding what is best for your company.
Cost
One important difference between BCFG and B Lab is the cost of certification.
B Lab is a large nonprofit that works with businesses on a national and international level. It has a large global audience that it helps and it is a great option for big businesses with strong funding. B Lab certification fees vary based on a business’s gross annual revenue. For businesses making under $500,000 a year, B Lab charges a one-time $150 submission fee and an annual $2,000 fee. That annual fee is paid every year with a recertification due every three years. Many companies have to hire a consultant to help with the certification process which can cost anywhere from $5,000 to $20,000.
Smaller businesses with less funds may prefer BCFG. There is no need for consultants and fees are lower when certifying as a BCFG. For businesses with less than 5 employees, BCFG charges a one-time $299 fee and an annual $199 fee for recertification. The one-time fee is capped at $1999 for businesses with over 200 employees. They certify companies ranging from solopreneurs to those with hundreds of employees and everything in between. BCFG is an affordable way to show your commitment to people, planet and profit no matter how big or small your business is.
Certification Process
When deciding between BCFG and B Lab, time commitment may be noteworthy.
The process to become a certified through B Lab is more time-consuming than BCFG. Currently, the B Lab certification process takes an average of six to nine months to complete. Their commitment to social and environmental policies and the documentation required makes their process rigorous. Companies must measure up to a high bar and provide deep metrics to show their commitment to social and environmental issues. After getting certified, companies must recertify every three years. B Lab has the resources to help businesses impact the world, which can make the process worth the wait.
BCFG’s certification process is much simpler. It takes about two weeks to become certified once your business submits the initial 60-question questionnaire. Companies must recertify annually but in contrast with B Lab, there are only four steps to becoming a certified BCFG:
Decide that joining BCFG is right for your business.
File with your Secretary of State’s office.
Choose a third-party standard to help measure your company's commitment to people, planet and profit.
Produce an annual benefit report about what your business is doing for people, planet and profit.
Both certifications show your company's dedication to sustainability as a triple bottom line business.
Community
If community is important to you and your businesses, you may want to consider the differences between B Lab and BCFG.
B Lab is a good option for businesses to show their commitment to environmental and social issues because they are a well-known and credible source for business certification. In fact, certified B Corps are now found all over the world.
At BCFG, they strive to create an environment where all businesses big and small feel welcome. Leaders in their community describe BCFG as an affordable, approachable, honest and credible company that helps businesses make a real difference. They want to be a guiding hand in helping your company reach its goals.
Final Thoughts
BCFG and B Lab are great options for your business to show its commitment to people, planet and profit. It’s important to understand the differences between the two certifications and choose the best one for your company. If you’re interested in joining the BCFG community and ready to start making an impact in the world today, just click here to begin your BCFG journey.
~benefitcorporationsforgood.com~