Embracing B-Corp Evolution: The Journey from Certification to Movement

Social Impact Lab hosted Jorge Fontanez, CEO of B Lab U.S. & Canada, who led an enlightening discussion on the evolution of B Lab and its pivotal role in redefining business success. Fontanez opened the event with a prompt to attendees: What is the role of standards and certification in driving behavior change and redefining the role of business away from shareholder primacy? How do we create the kind of economy that works for everyone?

The resulting conversation spotlighted the growth of the B-Corp movement and how B Lab is evolving to continue to set the standard. B Lab not only sustains its initial role as a certifying body but is also as a leader in the global shift to harness the power of business to address society’s most significant challenges. With a vision deeply rooted in environmental, social, and governance (ESG) principles and diversity, equity, and inclusion (DEI), B Lab is challenging and reshaping our economic systems to prioritize the planet and its people.

The B-Corp certification is a holistic standard for businesses committed to making a positive impact. The movement, celebrated for its rigorous approach, has seen a 40% increase in applications since January 2020, indicating a growing demand for meaningful corporate responsibility. Leonard Robinson (MBA, ‘25), a certified B-Corp small business owner and entrepreneur, noted, “The shift to stakeholder capitalism is the durable competitive advantage companies need. Private small enterprises already realize this will offer a strategic edge. I am happy to inform my mission and purpose with their best practices.”

Fontanez outlined a phased strategy for B Lab partners, from open-source impact assessments to mobilizing collective action. This blueprint not only aids businesses in identifying and bridging gaps in their impact goals but also fosters a community of practice that encourages continuous improvement and learning. Though the journey has its challenges.

With the movement's expansion to include more public corporations, concerns about maintaining the integrity and trust in the B-Corp certification have surfaced. Lauren D’Souza (MBA, ‘25), reflecting on her pre-Yale SOM experience with a B Corp-certified private equity firm, highlighted this pivotal moment: “B-Corps shift the business community towards the view that companies need to consider the impact of their decisions on all stakeholders (their employees, customers, suppliers, the environment, etc.) and not just shareholders.” Fontanez agreed, but also noted that multinationals can be a part of the B Lab mission: “There’s room in the tent for everyone. It's a lot of tough decisions, but I feel B Lab is in the best position to navigate these waters.”

As B Lab enters the next decade, its role becomes increasingly critical. The organization is setting standards and leading a cultural shift towards more sustainable, inclusive, and responsible business practices. By fostering partnerships across the ecosystem, including academic institutions and other alliances, B Lab is poised to lead the change in creating a new economy that works for everyone.