In this episode, Jason Moore, founder, and principal of Fulcrum Creatives, explains what a Certified B Corporation is, how companies can qualify and what it means for not only businesses but communities.
What is Fulcrum Creatives?
Based out of Columbus, Ohio, Fulcrum Creatives is a design and creative studio with the goal of always working for clients that were doing something beyond profit. While a client doesn’t have to be a non-profit organization to work with the studio, there does need to be a mission that includes providing something to a greater good.
What is a Certified B Corporation?
A B Corp refers to a certification, designated by a non-profit organization called B Lab, that businesses can acquire based on certain criteria. More specifically from their website:
“Certified B Corporations meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.”
B Corps came into the scene 11 years ago, and one way you can organize as a B Corporation is to maintain a mission-based charter. While that isn’t an option in Ohio just yet, there are people making movements toward getting B Corp legislation passed. The hold-up is mainly attributed to the base of the Bar Association, which is mainly composed of corporate lawyers whom don’t necessarily think a B Corp would be something that people would want to invest in. The interesting point is that there are no tax breaks associated with the designation. Meaning:
“There’s no reason not to have it. If you don’t want to invest in it, that doesn’t mean there’s no reason to not have it exist. Otherwise, to be a B Corporation, you would have to organize in another state and do business here.”
As of now, there are somewhere between 32-34 states where there is a legal standing for organizing a B Corp this way.
What’s the alternative? How did Fulcrum Creatives do it?
Since becoming a B Corporation isn’t available in Ohio, Fulcrum Creatives is a Certified B Corp, which Jason explains:
“There is an assessment where you have to go through and open up all your books, all your HR practices, everything about your company and supply chains—every single thing that you do receives scores. And you have to score enough points to be able to gain the certification.”
In total, there are currently over 2,500 Certified B Corporations in more than 50 countries, according to the B Corp website.
What components are looked at to become a Certified B Corp?
Every two years, a company will have to go through an assessment. One thing this assessment does is show you areas where you can improve in your business, such as energy consumption. Anything from burning incandescent bulbs to low flow toilets can affect your score. In addition to what your business does, the assessment also looks at your supply chain vendors, which is a major point for a design company like Fulcrum Creatives.
“One of the biggest areas that we could change is in print… There's not as much print as there used to be, but if you are going to do print, you can use post-industrial, recycled waste, paper-based products and other areas of the printing industry that can be a bit more green.”
Other points considered in the assessment is a company’s client list (who are you working with, what impact are you having in communities, etc.) and transparency (equal employee pay, open books, etc.).
If Fulcrum Creatives worked with BP, for example, their score would go down.