Book Review: The B Corp Handbook

Ryan Honeyman’s new book, The B Corp Handbook, opens with a rallying cry, a declaration of “interdependence” for a business movement that riffs mightily and effectively on our Founding Father’s credo.

This inspirational manifesto, “We envision a new sector of the economy which harnesses the power of private enterprise to create public benefit,” sets the tone for Honeyman’s thorough examination of Certified B Corporations, also known as B Corps. (You can view the full manifesto here—it’s a fun read and worth the time.)

A Platform Based on Transparency, Accountability and Performance

At this writing, there are more than 1,100 certified B Corps around the globe. This book, which is a practical and useful, step-by-step guide on how to become a B Corp, will likely accelerate the growth of these companies. (You can read more about B Corps on our blog, “Be the Change and Certify as a B Corporation.”)

Honeyman’s guide covers the genesis behind the founding of B Lab, the nonprofit entity that created the B Corp framework, then blazes a trail through the benefits of becoming a B Corp, the assessment required to become certified as one, and a helpful section on getting started quickly.

“I was drawn to the B Corp movement because it is very difficult to explain exactly what ‘going green’ means to prospective consulting clients,” says Honeyman, an experienced sustainability consultant. “The B Corp certification process gave me a tool to help business owners, investors, and policy-makers understand how to improve the social and environmental performance of an entire company versus just changing a few light bulbs or installing solar panels. Many of my clients had never thought about how sustainability can benefit local communities, workers, and the environment.”

“B Corp provides what is lacking elsewhere: proof.” The New York Times.

The book’s greatest strength is its clear-headed explanation of the certification process and the online assessment tool, which enables companies to measure, compare and improve their social and environmental performance. A minimum score determined by the online assessment tool is required to formally qualify as a B Corp. As Honeyman points out, this is a good (and free) resource for companies, even if they do not intend to certify, because it allows them to measure their performance and compare it against others.

B Corp or Benefit Corporation or Both?

Honeyman also clears up a common source of confusion by discussing the similarities and distinctions between Certified B Corporations and Benefit Corporations. The latter is a relatively new legal structure in the U.S. Unlike more established corporate forms—such as Limited Liability Corporations (LLC) or C Corporations—Benefit Corporations are a specific class of corporation that is required to create a material impact on society and the environment.

You can become a Benefit Corporation without certifying as a B Corp. However, if you certify as a B Corp in one of the 27 states that have now passed Benefit Corporation legislation, you are mandated to become a Benefit Corporation as well. (B Corps in states that have not ratified the legislation—such as here in Idaho—are required to adopt clarifying language into their bylaws.)

A Turbo-Charged Approach to Certifying

Honeyman is articulate and straightforward in his approach, and the book is an easy, yet thoughtful, read. Maybe that's a good thing because the target audience is about as time pressured as any group; the author’s accessible manner removes this as a potential obstacle.

In fact, time pressures are one of the greatest barriers to certification. In my own evangelizing for B Corps, it’s my experience that interested business owners perceive the time required to certify as perhaps their biggest roadblock to certification. Honeyman’s quick-start guide, which he describes as a “six-week, turbocharged” plan for certifying, attacks this notion and will surely lead to more companies completing the assessment.

To his credit, Honeyman does not let his opinions steal the show. He cites credible research and often gets out of the way to let B Corps tell their own stories, from 200-year-old King Arthur Flour to sustainability leader Patagonia, from online marketplace Etsy to Juhudi Kilimo, an asset-based finance and training firm in Kenya.

The book could be strengthened by adding data on the aggregate impact of the movement to date. It would be interesting to know how much measurable and meaningful impact the community of more than 1,100 B Corps has contributed since certified B Corps first arrived on the scene in 2007. I’m guessing its scale is substantial and compelling.

The Human Drive For Community

Of course, while numbers seem to rule the business world, we should not forget the human drive for community that propels this book and the movement it chronicles. “The B Corp movement reconnected me with something that I had forgotten: the incredible power of being part of a community that shares my core values and a clear sense of purpose,” says Honeyman.

If you’re curious about new business models, you should give this book a read. If you’re interested in using business as a force for good, The B Corp Handbook is required reading.

Need more convincing than that? How about this quote from Nobel Laureate economist Robert Schiller: “I think B Corporations will make more profits than other types of companies.”

As a businessperson, hey – that sounds like good enough reason to buy the book to me.

Author’s Note: A version of this review appeared previously on the website of Corporate Knights, the magazine for clean capitalism.