B Corps In Australia: What Are They And How Do They Work? (2025 Updated)

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With a growing global focus on Environment, Social and Corporate Governance (ESG) and Corporate Social Responsibility (CSR), in 2025 you might have heard the term “B Corp” mentioned more frequently than ever. This certification is increasingly seen as a reliable indicator that an organisation is committed to making a positive impact on society and the environment.

But, as B Corps rise in popularity, you may be asking some of the following questions:

What exactly is a B Corp?
How long have B Corps been around?
Is it worth becoming a B Corp?
How do you get B Corp certification?
Are there any well-known organisations that are B Corps?

All these questions are explored in more detail below.

What Is A B Corp?

A B Corp (also known as a Certified B Corporation) is an organisation that has demonstrated a strong commitment to being both socially and environmentally responsible. In 2025, more businesses than ever are embracing the B Corp model as a way to balance profit with purpose and to prove their dedication to the communities they serve.

Being a B Corp means that the organisation has been officially certified by B Lab, the global not-for-profit that holds businesses to a higher standard of accountability. Once a business meets B Lab’s rigorous criteria—which now include updated environmental and social benchmarks—it can proudly adopt the B Corp certification. If you’re looking into sustainable business practices, you might also want to read our guide on operating as a sole trader to see how small business owners are integrating similar values.

Read on to learn exactly what’s involved in becoming a B Corp.

What Does It Mean To Be A B Corp?

When your business earns B Corp status, it means you’ve successfully navigated B Lab’s comprehensive assessment process. In 2025, this process is even more robust, ensuring that companies not only meet initial certification standards but also commit to continuously improving their stakeholder governance practices.

What Is The B Impact Assessment?

It’s one thing to claim you’re making a positive impact on your community, and quite another to prove it. The B Impact Assessment is a comprehensive questionnaire conducted by B Lab, examining your internal policies, environmental practices, and social contributions. In 2025, many organisations praise this tool for offering clear guidance on how to enhance their performance and achieve an improved impact score.

Essentially, B Lab takes a closer look at your organisational frameworks and metrics to decide whether you’re genuinely making a positive difference. Once completed, your business receives an impact score, and to be certified as a B Corp, you will need a score of at least 80. Numerous forward-thinking SMEs are now reaching these targets as they refine their practices year on year.

The process is similar to a business earning a “Fairtrade” certification from Fairtrade International, except that rather than certifying specific products, B Lab certifies your entire company.

One important thing to note is that B Corps shouldn’t be confused with charities or social enterprises. While many B Corps do have a social purpose at their core, the certification is also available to more traditional profit-driven businesses that are committed to sustainability. The goal is to prove that companies can prioritise social and environmental goals without sacrificing financial performance.

This dual focus on profit and purpose is exactly why the B Corp concept was developed – and why it remains so relevant in 2025. Many modern businesses are adopting ethical practices as a competitive differentiator, something we also explore in our Company Constitution guides.

It’s important to note that being a B Corp doesn’t carry any specific legal or government status in Australia—unlike registering a charity with the ACNC or becoming a recognised Public Benevolent Institute. This means that, as of 2025, the Australian government does not offer tax exemptions or other concessions solely for B Corps. Nonetheless, the certification is highly regarded by consumers and investors alike, as it demonstrates robust stakeholder governance, much like the detailed frameworks we cover in our amending your governing documents resources.

The History Of B Corps: When Did B Corps Start?

B Lab was founded in 2006 in the US with the goal of transforming how businesses operate by encouraging a balance between profit and purpose. Its pioneering work has led to over 4,000 companies worldwide achieving B Corp certification by 2025, reflecting a growing global demand for ethical, sustainable business practices.

The success of B Lab has also spurred legislative innovations in several US states, where benefit corporation status is now a legal entity. In Australia, while formal benefit corporation legislation has not yet been adopted, B Lab’s tailored governance requirements for local businesses ensure that companies can achieve B Corp status within the existing legal framework.

Instead of pursuing legislative change, B Lab now focuses on a set of governance requirements specifically designed for Australian entities. If your business meets these criteria, B Lab recognises you as a certified B Corp in line with current local practices.

B Corp Certification

The only way to receive B Corp certification is to apply directly with B Lab. According to the B Lab website, the process now typically takes around 8 to 10 months, depending on your business’s size and preparedness. Over recent years, enhanced digital tools and clearer guidelines have helped streamline this process for many applicants.

It’s a relatively straightforward process as B Lab provides extensive process guidelines and a wealth of resources to support your application. The process, though, can be quite involved. You’ll have to:

Complete a detailed B Impact Assessment (as covered earlier)
Make the necessary changes to your governing documents (see: B Corp Governance Requirements below)
Wait for B Lab to review and verify your application and supporting documents

Most Australian legal structures qualify for B Corp status (including sole traders, partnerships, trusts and companies). However, there are certain eligibility requirements:

The business must have been operating for a minimum of 12 months; and
The business must not hold Deductible Gift Recipient status.

There are also costs involved in B Corp certification, with an annual fee charged based on your organisation’s annual revenue. While these expenses can add up, many businesses find the benefits—such as increased consumer trust and potential access to sustainable investment—well worth the investment.

In Australia, although B Corp certification isn’t a government-registered status, being verified by B Lab carries significant weight. It’s a quality mark similar to choosing products with a ‘dolphin-friendly’ label—it assures consumers that your brand upholds high standards of sustainability. For further insights, our detailed guides on legal requirements can help you understand how to build trust through your business practices.

Ultimately, the B Corp journey is both a commitment and an opportunity to refine your business practices for long-term success. In 2025, many Australian SMEs and startups are opting into this certification as a way to boost consumer trust, attract impact-driven investment, and ensure robust stakeholder governance. If you’re looking to embed sustainability into your operations, our legal experts can help you integrate the necessary clauses into your governing documents – check out our resources on amending your governing documents and optimising your company constitution for detailed guidance.

B Corp Governance Requirements

The general governance requirement for B Corp eligibility is that an organisation “considers the impact of their decisions on all of their stakeholders” – this is known as stakeholder governance. Business owners must have mechanisms in place to demonstrate that they give equal weight to the needs of employees, the community, and the environment, alongside their pursuit of profits.

B Lab has established specific governance legal requirements for receiving B Corp status in every jurisdiction. For example, your governing document must comply with B Lab’s criteria (our lawyers can help you with this), as well as any entity-specific legal requirements.

B Corp organisations are required to maintain a legal framework that upholds their commitment to balancing profit with purpose, even during events such as capital raises and leadership changes.

What Documents Do I Need For A B Corp?

In Australia, satisfying the B Corp governance requirements is relatively straightforward. B Lab provides clear guidance, but essentially your governing documents must include a commitment to a ‘triple bottom line’ approach. This is achieved by inserting specific clauses into your governing document.

For a private company, you can enshrine your stakeholder governance approach in your Company Constitution. This document outlines the operational rules for your company and must include a statement of purpose as well as an obligation for directors to consider broader stakeholder interests when making decisions. If you’re operating under a trust structure, the process will involve amending your Trust Deed accordingly.

It’s not as simple as copying and pasting standard clauses—these need to be carefully incorporated into the appropriate sections of your governing document and executed legally according to Australian law. For instance, with a Company Constitution, changes typically require passing a special resolution, as detailed in our guide on amending your constitution.

Is It Worth Becoming A B Corp?

The decision to apply for B Corp certification ultimately depends on your organisation’s values and future vision. There are several benefits and challenges to consider when deciding if the certification is right for you. We’ve outlined a few pros and cons below.

Pros of B Corp Status

Internationally recognised certification of your commitment to more than just profits. In an era where “greenwashing” is prevalent, B Lab’s independent certification helps show that your business’s positive impact is genuine.
Enhanced insight into your social and environmental impact. The B Impact Assessment process not only confirms the contributions you’re already making but also pinpoints areas for improvement, helping you drive continuous positive change.
Improved investor and consumer confidence. In 2025, many impact investors and ethically minded consumers actively seek out businesses that demonstrate responsible practices, potentially leading to better financing terms and strengthened brand reputation.

Cons Of B Corp Status

Upfront and ongoing fees – Certification and annual renewal fees are based on your organisation’s annual revenue, which can add to your costs.
Risk of reputational damage – If your organisation fails to maintain the required standards and loses your certification, it could negatively impact your brand image and marketing efforts.
Additional administrative requirements – Meeting and maintaining B Corp standards can mean extra work, requiring you to devote time and resources to legal and operational adjustments.
Focus diversion – The effort required to continuously comply with B Lab’s evolving requirements might divert your attention from other core business activities.

Famous B Corps

Having B Corp status has enabled many businesses to clearly demonstrate their commitment to sustainable practices. Here are just a few notable examples:

Unilever – A global brand providing everyday essentials across personal, food, and home products.
BrewDog – An internationally recognised brewer and pub chain known for its bold approach to sustainability.
United by Blue – A sustainable outdoor apparel company devoted to environmental clean-up and responsible production.

These companies exemplify how B Corp certification not only enhances operational practices but also builds lasting trust with consumers who value sustainability. Their success stories highlight why many businesses, regardless of size, are turning to the B Corp model as part of their evolution.

Of course, the benefits of B Corp status aren’t reserved for multinational giants alone. Increasingly, Australian SMEs and startups are recognising that embedding strong sustainability credentials into their operations can boost both market reputation and long-term profitability.

Key Takeaways

Receiving B Corp certification is an excellent way to demonstrate that your business is dedicated not only to earning profits but also to making a positive social and environmental impact.

If you’re considering applying to have your business certified as a B Corp and need guidance on incorporating the necessary governance requirements, we’re here to help. Our legal consultants offer a free chat about transitioning to a B-Corp and how to embed these standards into your business’ operations.

Emily Price

Emily is a commercial lawyer at Sprintlaw. Having worked in tech startups for a number of years, Emily brings a unique understanding of technology, business and law. Her experience spans across corporate structuring, intellectual property protection, consumer and privacy compliance and technology contracts.

Sapna Goundan

Sapna has completed a Bachelor of Arts/Laws. Since graduating, she's worked primarily in the field of legal research and writing, and she now writes for Sprintlaw.

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