Working with a B Corp: What it means and why it matters

It’s a distinct icon that’s becoming increasingly recognized. Certified B Corporations (“B Corps” for short) are emerging across nearly every industry, from shampoo to ice cream, apparel, and more. You may have even noticed the B Corporation logo on Westmount’s website:

B Corporations are multifaceted. Essentially, they’re for-profit entities that seek to balance profit with purpose. Certified B Corporations have met rigorous standards of social and environmental performance, transparency, and accountability. Digging deeper into this process will reveal the underpinnings of a much broader movement—the B Corporation movement—to transform business into a force for good in the world.

Put another way, B Corporations serve as the convergence point between businesses that want to embrace more sustainable business models, with a great focus on their customers, community and other stakeholders. Still, the B Corporation label is not yet universally known and sometimes misunderstood. Below, we examine the rationale for buying from and working with B Corporations, the rigors of certification, the benefits—for clients and businesses alike—and the responsibilities implicit in the certification.

Why the B Corp Movement Matters

For mission-driven organizations like foundations, endowments, and other charitable institutions, working with a B Corp provides assurance that certified companies are similarly committed to a more inclusive and equitable economy, pursuing objectives that extend beyond profitability. This designation provides a layer of trust that B Corps are ethically and culturally aligned with the values that nonprofit organizations espouse.

At Westmount, our B Corp certification testifies to the fact that nonprofit organizations do not have to choose between strong investment returns and an ingrained commitment to growing the good in society. Both goals are possible—and desirable. We are proud of our B Corp Certification, knowing it provides our clients with a quantifiable method to assess our commitment to a higher standard of behavior as corporate citizens and members of our community.

The Vision

Established in 2006 by the nonprofit network, B Lab, the international B Corporation movement seeks to guide businesses toward a stakeholder-driven model that serves as a force for good in society. The movement’s mission is to create a more just future for all people and the planet by envisioning a resilient economy that creates value for all stakeholders—workers, the larger community, and the environment. Committed to racial and climate justice, companies that comprise the B Corp movement strive to dismantle unjust policies and systems while recognizing the good that for-profit companies can accomplish.

The “B” in B Corp stands for “Benefit for all.” There are currently more than 8,000 certified B Corps around the globe, and the number is growing each year. Some well-known B Corps include Patagonia, Kickstarter, Coursera, Warby Parker, and Allbirds.

The Process

The B Corp certification process is demanding and comprises a series of questionnaires, risk reviews, verification interviews, and significant documentation across five categories: governance, workers, customers, community, and the environment. Through an intensive screening process, B Lab assesses these variables—both quantitative and qualitative—and assigns a score to determine whether a company qualifies for B Corp certification. Those who successfully complete this process must fulfill additional requirements, such as updating their governing documents and being able to qualify for recertification every three years.

In January 2022, Westmount was one of the first Registered Investment Advisers (RIAs) in Southern California to become B Corp-certified, the culmination of a process that began in 2020. Candidate organizations must meet a specific threshold—a benchmark that we exceeded on our first attempt—and seek to continually improve with each recertification.

As we undertook the initial certification process at Westmount, we found that we had already instituted many of the best practices prioritized by B Lab—transparency in reporting, equitable pay ratios throughout our organization, high-quality employee benefits, LEED certification for our office building, an active recycling program, employee-driven community volunteerism, and philanthropic support through fundraising initiatives and our employee donation match. In addition, Westmount launched an investment portfolio focusing on environmental, social, and governance (ESG) factors in 2018, further demonstrating our commitment to the principled stewardship of client assets.

B Corps must qualify for re-certification every three years—a process we are currently undergoing. This process is integral to the overarching mission of B Lab, requiring member firms to demonstrate they are constantly enhancing their business practices. Thresholds for success become more stringent over time—an evolution designed to encourage continuous improvement. At Westmount, we regularly revisit our B Corp metrics to uncover ways we can continue to grow, “walking the walk” in becoming better corporate citizens for our clients, employees, and the larger community. We also draw upon case studies, reports and best practices that B Corp makes available, incorporating new ideas.

Putting it All Together

Our mission at Westmount is always to put our clients first. We accomplish this goal by attracting pre-eminent talent to our organization, adhering to ethical business practices, nurturing a high-striving culture, and maintaining an outward-focused perspective. We are proud of our team’s social cohesiveness and believe this mindset translates into superior service for the clients we are honored to advise.

Please visit the B Lab website and our company profile to read more about the B Corp movement and its inspiration. To learn more about Westmount’s own commitment to growing the good in business or our ESG Investment Strategy, or contact an advisor to start the conversation.