BCORP Licensing Criteria 1 — Questions and Answers
Question 1: Which of the following areas does the B Impact Assessment NOT evaluate?
- Workers
- Environment
- Profit Margin (Correct answer)
- Community
Correct answer: Profit Margin
The B Impact Assessment evaluates a company's performance in five key areas: Governance, Workers, Community, Environment, and Customers. It focuses on social and environmental impact rather than purely financial metrics. Therefore, profit margin, which is a financial performance indicator, is not directly evaluated by the B Impact Assessment.
Question 2: What is the minimum score a company must achieve on the B Impact Assessment to be eligible for B Corp certification?
- 50 points
- 100 points
- 80 points (Correct answer)
- 120 points
Correct answer: 80 points
To be eligible for B Corp certification, a company must achieve a minimum verified score of 80 points on the B Impact Assessment. This score demonstrates a significant commitment to social and environmental performance, distinguishing B Corps from traditional businesses. The assessment is a rigorous evaluation of a company's impact on all its stakeholders.
Question 3: Which of the following best describes the legal requirement for Certified B Corps?
- They must donate 10% of profits to charity.
- They must amend their governing documents to consider stakeholders. (Correct answer)
- They must pay higher taxes.
- They must be audited annually by the government.
Correct answer: They must amend their governing documents to consider stakeholders.
A key legal requirement for Certified B Corps is to amend their governing documents, such as their articles of incorporation, to consider the impact of their decisions on all stakeholders. This includes workers, customers, the community, and the environment, in addition to shareholders. This legal framework ensures long-term accountability to their mission beyond profit maximization.
Question 4: How often must a Certified B Corp recertify to maintain its certification?
- Every year
- Every 3 years (Correct answer)
- Every 5 years
- Only once, at the initial certification
Correct answer: Every 3 years
To maintain its certification, a Certified B Corp must recertify every three years. This regular recertification process ensures that companies continuously meet the evolving B Corp standards and demonstrate ongoing commitment to social and environmental performance. It encourages continuous improvement and accountability over time.
Question 5: Which of the following is NOT a component of the B Impact Assessment?
- Governance
- Product design (Correct answer)
- Customers
- Environmental impact
Correct answer: Product design
The B Impact Assessment is structured around five main impact areas: Governance, Workers, Community, Environment, and Customers. While a company's product or service might have an environmental or customer impact, 'Product design' itself is not one of the five distinct components of the assessment. The assessment focuses on the operational and systemic impact of the business.
BCORP Licensing Criteria 1
Which of the following areas does the B Impact Assessment NOT evaluate?