Certified B Corps: An Examination of a Standard Based Approach to Stakeholder Governance

Adeyeye, Adefolake

Abstract

In 2015, B Corp certification was launched in the UK. Since then, over 1,200 companies have adopted certified B Corps status. Most certified B Corps in the UK are small and medium-sized, with SMEs accounting for 99.9% of businesses in the UK. The B Corp movement seeks to change the economic system from a shareholder capitalism to a stakeholder economy. Certified B Corps adopt a stakeholder-driven mode towards ‘high standards of social and environmental performance, accountability and transparency’. The article explores the growth of the B Corp movement; issues around its standards; certification process, including the legal requirement; transparency; and governance. It examines the effectiveness of this standard-based approach for stakeholder governance. It argues that the certified B Corp creates an avenue for stakeholder governance. However, to fully realise the shift towards stakeholder governance, there is a need for greater work towards achieving accountability for all key stakeholders identified as shareholders, workers, community, environment, and customers.

Citation

Adeyeye, A. (2024). Certified B Corps: An Examination of a Standard Based Approach to Stakeholder Governance. European Business Law Review, 35(6), 755-778. https://doi.org/10.54648/eulr2024041

• Journal Article Type: Article
• Acceptance Date: Jun 9, 2024
• Online Publication Date: Oct 21, 2024
• Publication Date: 2024
• Deposit Date: Aug 22, 2024
• Publicly Available Date: Oct 21, 2024
• Journal: European Business Law Review
• Print ISSN: 0959-6941
• Publisher: Kluwer Law International
• Peer Reviewed: Peer Reviewed
• Volume: 35
• Issue: 6
• Pages: 755-778
• DOI: https://doi.org/10.54648/eulr2024041
• Public URL: https://durham-repository.worktribe.com/output/2763518