Canadian 'B Corps' Put Their Money Where Their Branding Is On Social Causes

For-profit companies that trumpet a commitment to social and environmental causes often struggle to prove to investors and customers that their dedication to betterment runs deeper than a clever green-washing campaign.

But that has begun to change.

A growing number of Canadian companies are now becoming certified as “B Corps,” a new designation that seeks to distinguish firms that are committed to improving more than their bottom line.

The aim, says Dermot Hikisch of B Lab, a Pennsylvania-based non-profit that has certified more than 500 B Corporations in the U.S. since 2007, is to do the same thing for companies serious about addressing social and environmental issues as Fair Trade certification has done for firms dedicated to ethical labour practices.

“Consumers, investors and even employees aren’t necessarily believing what a company says until they have a third party seal of approval on it,” Hikisch told The Huffington Post. “B Lab acts as that third party standard to make sure these companies are as good as they say they are.”

Since 2009, 39 Canadian companies -- ranging from engineering firms to coffee retailers -- have become designated B Corps, with 27 new companies certifying in the past year.