B Lab introduced the B Impact Assessment behind B Corporation certification in 2006.
B Lab is a nonprofit organization founded in the United States by Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy. It created a framework for evaluating a company’s social and environmental performance alongside its financial performance.
Companies seeking Certified B Corporation status complete the assessment and undergo a verification process. The evaluation can cover governance, workers, community, environment, and customers. Certification is different from being a benefit corporation, which is a legal corporate form available under the laws of some jurisdictions.
The B Impact Assessment is used by businesses of different sizes, including small firms. Its purpose is not simply to identify charitable donations; it examines how a company operates and affects stakeholders. That distinction is why “B Corp” and “benefit corporation” should not be treated as exact synonyms.