Companies may be at risk of losing their B Corp ethical status because the organisation behind the system has raised their eligibility standards.
B Lab, which oversees B Corp certification, launched the biggest overhaul in its 19-year history earlier this month, The Guardian reported on Monday (6 April).
The organisation has scrapped its previous system which allowed companies to qualify for the status by gaining enough points across multiple categories.
In the past, businesses that performed poorly in one of the five criteria could make up for it by scoring highly in another category.
According to The Guardian, sources close to the process said some of the 10,000 companies with the status will need to improve their ethical standards to secure recertification, which is required every three years.
These changes show B Corp certification is becoming “harder to keep unless companies perform well across the full range of criteria”, Amanda Chadwick, an employment law and employee wellbeing professional, said.
Chadwick told HR magazine: “HR can support organisations wanting to retain their B Corp status by making sure ethical values are built into everyday people practices, not all talk and no proof.
“This includes creating and maintaining fair policies on recruitment, pay, equality, wellbeing, training and employee relations, as well as making sure managers apply them consistently.
“By promoting a positive workplace culture, giving employees a voice, and identifying areas for...
(New users only) It's tax relief season! Get up to RM300 when you save with Versa! Plus, enjoy an additional FREE RM10 when you sign up using code VERSAMM10 with a min. cash-in of RM100 today. T&a...