Earlier this year, Dr Bronner’s, a natural soap company, made the decision to withdraw from B Corp, the renowned certification program that recognizes companies with high standards for their social and environmental practices.
The California-based family business, which employs 323 people, had been a member for 10 years. However, it stated that the accreditation was not stringent enough and accused the organization responsible for B Corp, B Lab, of being too lenient in accepting some of the world’s largest companies into the program. Dr Bronner’s accused B Corp of enabling “greenwashing and purpose washing” by these multinational corporations.
The company specifically targeted B Corp’s decision to grant certification to Nespresso, a coffee capsule brand owned by Swiss food giant Nestlé, in 2022. This decision was made despite Nespresso facing accusations in 2020 of employing child labor in its coffee supply chain in Guatemala. Nespresso responded by claiming to have a “zero tolerance” policy towards child labor and promising to take immediate action.
In a statement announcing its departure from B Corp, Dr Bronner’s declared that it was “unacceptable” for them to be associated with “large multinational CPG [consumer packaged goods] with a history of serious ecological and labor issues.” The company stated that remaining certified went against their mission and compromised the integrity of the B Corp certification.
In response, a Nespresso spokesperson told the BBC that their B Corp certification was a recognition of their long-standing commitment to sustainability and their efforts to support coffee farmers. They also emphasized that their certification was the result of a rigorous assessment of their environmental and social performance across their business and supply chain.
The B Corp program was established in 2006 and currently has over 9,600 members from 102 countries and 161 industries. The “B” in B Corp stands for “beneficial” and being certified can help companies attract environmentally and socially conscious customers.
B Lab declined to disclose the number of multinational members, but stated that over 96% of their members are small and medium-sized businesses. While they have defended Nespresso’s membership, B Lab is introducing new, more rigorous certification standards in 2022.
Currently, companies can obtain B Corp certification by scoring at least 80 points out of a total of 200 in various environmental and social criteria. This means that a company can have a weak performance in one area but make up for it in others. However, from 2026, a points system will no longer be used and companies will have to meet minimum requirements in seven key areas: purpose and shareholder governance, fair work, justice, equity, diversity and inclusion, human rights, climate action, environmental stewardship, and government affairs and collective action. Third-party verification of companies’ performances will also be introduced, and companies will have to demonstrate continuous improvement in their standards.
Chris Turner, CEO of B Lab UK, stated that these changes are aimed at making the standards more rigorous and raising the bar for businesses. He denied that the new standards were specifically targeting multinational members, but acknowledged that bigger businesses have a greater potential for impact and therefore need more stringent checks.
He also mentioned that B Lab will work with companies to help them meet the new standards, but the level of effort required will vary for each business. Some may find it easy, while others may have significant work to do.
It remains to be seen if these changes will prevent smaller companies like Dr Bronner’s from leaving B Corp. Another company, UK pet food company Scrumbles, also withdrew from the program this year. Co-founder Aneisha Soobroyen stated that the focus on increasing membership rather than promoting sustainability efforts led to their decision to leave. Instead of paying the annual recertification fee, Scrumbles donated the money to Save The Children.
According to Nancy Landrum, a professor of sustainable business transformation, B Corp is a good starting point for businesses beginning their sustainability journey. However, she believes that the program, along with other widely used certification schemes, do not go far enough.
Being a B Corp certified company can help boost sales, but Dr Bronner’s CEO David Bronner believes that their brand strength is enough to sustain their business. He also stated that they would reapply for B Corp if stricter rules were put in place for the supply chains of multinational members. In the meantime, the company has launched their own certification program called Purpose Pledge, which focuses on companies with a strong mission, accountability, and supply chain integrity. So far, 14 companies have joined this program.