What to know about the Scoping: Related entities section in the certification setup

The Certification Setup experience will take you through a personalized questionnaire to check your company's eligibility for certification and understand the scope of your company's operations. By getting to know more about your company, we'll be able to tailor your assessment to your company's size, industry, and location.

Once you've completed all sections, you will receive your company's assessment and can start measuring your company's impact.

What is the purpose of the Scoping: Related entities section in Setup?

The purpose of the Scoping: Related entities section is to collect information about your company’s organizational structure so that you  know which entities in your organization need to be included when completing the assessment and meeting the legal requirement. The Scoping: Related entities section  which entities need to be included in assessment, while the Scoping: Customize your assessment section  gives the company the most appropriate version of the assessment for all entities required to pursue certification.

What information do I need to complete the Scoping: Related entities section?

It is crucial to have collected information about the company that includes the following, if applicable:

• The list of parent entities and their respective ownership percentage of the company

• The list of parent companies that are non-operational holding entities

• The amount of the company that is owned by individual persons and their respective percentage of ownership

• Any shared core functions between the company and its parent company

• Any shared employees on payroll or revenues in the same country as the parent company

• Any majority-owned, consolidated, and controlled subsidiaries by the company

• List of names and percentages of all subsidiaries

• If the company shares any other aspect of business with other entities.

• If 80% or more of the workforce of the entities listed work in the same country

What does “core function” mean for a company?

A “core function” of a company is typically characterized as the executive team functions, workers, facilities or supply chain.

What are the possible outcomes of this section? 

This section has questions about the company’s related entities, such as parent companies or subsidiaries, shared branding or operations to determine the scope of operations to be included in the assessment. Some companies will receive an automated Scoping decision while others will have to undergo a manual review with one of B Lab’s Setup specialists. If any of these attributes  apply to your company, an analyst will manually review your company’s information: 

• Company has more than 10 parent companies 

• Company has some unlisted owners (ownership in focus entity is less than 100%) 

• Company has parent companies that are not independently-owned 

• Company has parent companies that have other subsidiaries 

• Company has more than 10 subsidiaries

• Company share operations or brands with other entities not mentioned 

• Company does not have 80% of workforce in the same country

A review does not necessarily mean that a company is not able to pursue certification, only that a person must assist in determining the full scope of entities required for the certification.

How do I incorporate the entities in scope into the assessment? 
Questions such as "Volunteer Service Per Capita" or "Facility Improvement with Landlord" are meant to capture all operations in all regions. 

How do I complete the legal requirement? 

Please review the Legal Requirement tool for your company's specific corporate form and country of incorporation.