Opinion: Gauging Corporate Social Responsibility

The idea of Certified B Corporations—businesses whose bylaws allow them to consider the social, environmental, and labor impact of their work as well as profits—is spreading fast, but the jury is still out as to whether the designation helps companies financially, a New York Times commentator writes.

With B Corp certification, provided by a nonprofit organization called B Lab, companies can make decisions based on a “triple bottom line: people, planet, and profits,” writes Tina Rosenberg, a former Times editorial writer.

Four years after the designation took root she says, the financial rewards of B Corp status largely depend on “what you produce.”

Companies that provide products and services for the general market say the label does not yet mean much to consumers, unlike the better-established “fair trade” designation, but its value rises sharply for firms that offer green or ethical products. In addition, some 40 business-service providers, such as credit-card processors and coffee roasters, offer discounts to B Corps.

Read a Chronicle of Philanthropy article about B Lab and B Corps.