The sustainability race: B Corp certification

The buzz around B Corp certification is building. But does it actually deliver benefits for accounting firms?

by | 8 Sep, 2023

Photo of people working in a small studio office.

Profit before people or the planet is no longer an idea that resonates with the British public.

In fact, almost four in five people would like to see changes to the law that ensure company directors rate social and environmental impact as highly as shareholder returns.

James Lizars, CEO of Thrive Accountants in West Sussex and experienced in working with B2B tech founders, says: “The paradigm is shifting. Business-as-usual thinking from old textbooks is no longer what good looks like.

“Business for good is good for business and benefits all stakeholders, including investors and not just employees.”

Thrive Accountants is one of a growing number of firms that has chosen B Corp certification to use their business as a platform for driving positive change, both within and beyond their value chain, and to let clients know they rate ESG concerns highly.

“The B Corp certification is a signal that a business has good ethics but also that it has taken wide-ranging steps to be a strong business,” says Lizars, whose company became B Corp-certified in 2021.

“But the benefits also come from the authenticity that underlies it.

James Lizars

“If you focus on a positive outcome for everyone – the people you work with, the environment, the supply chain and the community – it’s a win win.”

Having an ethical and sustainable certification may also simplify values-alignment conversations during tenders, pitches and proposals.

There are now 1,500 B Corps in the UK, making it home to the globe’s second-largest B Corp community. That number grew by 50% in the past year.

And here’s an interesting statistic: one survey found that between 2017 and 2020 B Corps saw average turnover growth of 26% compared to the national average of 5%.

Improving business processes

Getting B Corp status involves a rigorous accreditation process that assesses a company’s performance related to workers, the community, the environment, customers and governance.

Business owners also need to pass an exam that includes up to 200 questions tailored to the type and size of business and designed to highlight where improvements could be made.

Amendments to the company’s legal structure and/or articles of association to show their commitment to being a responsible business are also required.

Finally, all certified B Corps need to write an annual impact report and have to recertify, and improve their scores, every three years.

Says Lizars: “Mindset-wise, we were already there and didn’t need to convince anyone that it was right for us. From my early career, I have been a champion of employee engagement as a driver of commercial outcomes.

“As a parent, I also wanted to use our business as a platform for driving positive change both within and beyond our value chain.

“What we lacked was the rigour of documented policies and consistency in our processes.” Obtaining B Corp certification led the business through addressing those deficiencies, he says, and although it took around six months, has helped the firm embrace future growth. Thrive Accountants worked with an HR professional on employment contracts, a health and safety policy and a maternity leave policy, all necessary as its staff numbers expanded to seven.

“Two years on, we remain fully committed to our B Corp status and continue to expand the scope of how we serve all three pillars of people, planet and profit,” says Lizars.

Doing more to build a fairer world

Scott Johnson, founder of Kung Fu Accounting in Gloucestershire, says his business has been a BCorp from its start in 2016.

“We are an ethical, sustainable and impactful company by design, and that means we fit the B Corp criteria, so you might describe us as an accidental B Corp,” he says.

The initial certification process took around three months. The biggest challenge, says Johnson, was the time it took away from regular tasks.

But the certification does start conversations and help the firm win clients, says Johnson.

He now believes accounting and bookkeeping company owners need to do more to transition to a more ethical, sustainable and impactful way of doing things.

Some positive actions by his firm include donating three per cent of turnover to charitable causes, undertaking pro bono jobs, donating time and energy to non-accounting causes. These causes have included collecting food parcels or organising clothing donations. The firm also buys reconditioned IT equipment to reduce consumption of raw materials.

Like Thrive, Kung Fu Accounting, which has four staff, is also a completely digital business – no paper used. 

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