Whether you’re already certified or just exploring B Corp status, how you reward employees is important.
Certified B Corps meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. They’re accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy, with a growing community in the UK. Here, we look at why reward and employee engagement is an area to optimise during a company’s accreditation process.
The B Corp certification evaluates the overall positive impact of a company across a number of assessment criteria. It’s gaining in popularity as environmental, social and governance (ESG) aspects are increasingly prominent not just in regulatory matters but in the preferences of consumers and employee talent pool.
Certified B Corps achieve a minimum verified score on the B Impact Assessment (BIA)—a rigorous assessment of a company’s governance and impact on its workers, customers, community, and environment—and make their B Impact Report scores transparent. Certified B Corps also amend their legal governing documents (articles of association or constitution) to require their board of directors to balance profit and purpose.
The combination of third-party validation, public transparency, and legal accountability help Certified B Corps build trust and value. B Corp Certification is administered by the non-profit organisation B Lab. (You can find out more about B Corps in the UK here).
To fulfil the performance requirement for B Corp Certification, a company must complete the BIA. The BIA assesses the impact of both day-to-day operations and the business model— i.e. not just what you do but also how you do it. B Corp Certification requires a minimum verified total score of 80 across all impact areas.
The questions in a company’s BIA are determined by company size, sector, and market, with around 200 questions total.
Certification must be renewed every three years. There’s therefore a need to constantly keep optimising and improving against best practice to ensure no lapse of certification.
The ‘Workers’ assessment area is where a company’s reward strategy can either enhance scoring or act as a factor that drags down performance.
The assessment can include questions such as:
This last question is perhaps why we are seeing an increasing cross-over between B Corps status and companies which have adopted wider employee ownership as a business model.
Companies that wish to certify or recertify as B Corps might seek expert independent review and support in relation to the company’s pay and reward strategy and practice, employee equity participation and wider employee value proposition (EVP).
This may include:
We can support you to manage your reward and employee engagement to ensure your company delivers competitive value to incentivise your employees in a way that optimises your ‘Workers’ assessment scoring for B Corps purposes.
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