The Foundation Requirements lay the groundwork for what it means to be a Certified B Corp. As the first step in the certification journey, they ensure companies meet key eligibility and accountability criteria before diving into the Impact Topics. The Foundation Requirements include eligibility requirements, the B Corp legal requirement, and risk profile.
Why this Matters
The Foundation Requirements ensure B Corps do not undermine B Lab’s Theory of Change, implement a stakeholder governance model by adopting the legal requirement, and align their due diligence approach with their risk profile.
1. Eligibility
The Foundation Requirements establish the initial eligibility criteria for companies seeking B Corp Certification. Companies must meet specific conditions—for example, they must have been operating for at least 12 months, comply with relevant laws, and agree to transparency about their performance once certified. They must also operate in an industry aligned with B Lab’s Theory of Change.
FR 1 - The company meets the eligibility requirements for B Corp Certification |
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FR 1.1 - The company meets the entity qualifications to become a B Corp | All companies | Year 0
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FR1.2 - The company is not significantly involved in industries that undermine the B Lab Theory of Change |
FR 1.3 - The company complies with local and national laws and regulations |
FR 1.4 - The company shares accurate and complete information with B Lab |
FR 1.5 - The company is transparent about its performance against the B Lab Standard |
2. Legal requirement
Entities applying for the B Corp Certification meet the legal requirement of modifying their governing documents and supporting the shared collective purpose of the B Corp community. This ensures that B Corps remain legally accountable to all of their stakeholders, and allows companies to protect their mission even after capital structure or leadership changes.
FR 2 - The company adopts the B Corp legal requirement and commits to supporting the B Corp community’s collective purpose |
FR 2.1 - The company adopts the B Corp legal requirement in its corporate structure or governing documents | All companies | Year 0
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FR 2.2 - The company signs the Declaration of Interdependence and commits to the shared collective purpose of the B Corp community |
3. Risk profile*
Companies adopt a due diligence approach on issues depending on their risk exposure. This ensures that companies identify, prevent, and mitigate any negative human rights or environmental impacts, while increasing public accountability.
FR 3 - The company creates a risk profile and meets any additional sub-requirements |
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FR 3.1 - The company creates a risk profile and meets any additional sub-requirements | All Small, Medium, Large, Extra Large, and Extra Extra Large companies | Year 0
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Appendix
*Content of the Risk Tool (FR3.1.a - 3.1.n)
Companies meet FR3.1 via the Risk Tool. The tool has 14 questions representing priority risky practices that are not specifically addressed elsewhere in the standards. Each question corresponds to a risky practice and is answered with a “yes” or “no”. Depending on a company’s responses, specific sub-requirements will be added to their assessment.
Key terms and definitions
Term | Definition |
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B Corp Legal requirement | A component of the B Corp Foundation Requirements, requiring companies to: • adopt a broad purpose to create a material positive impact on society or the environment • modify director's obligations in governing documents to enable stakeholder governance. The legal requirement includes a purpose and a director's clause. |
B Lab’s Theory of Change | The idea underlying the mission of the B Global Network and movement — to create a world where business is a force for good, and companies lead efforts to transform the global economy into a more inclusive, equitable, and regenerative system. |
Declaration of Interdependence | We envision a global economy that uses business as a force for good. This economy consists of a new type of corporation – the B Corporation – which is purpose-driven and creates benefits for all stakeholders, not just shareholders. As Certified B Corporations and leaders of this emerging economy, we believe: That we must be the change we seek in the world. That all business ought to be conducted as if people and place mattered.That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all. To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations. (B Lab) |
Subject | Scope | Question |
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Independent contractors | Employees | [FR3.1.a] In the past fiscal year, did the company contract more independent contractors than it has employees? |
Negative health impacts | Products | [FR3.1.b] In the past fiscal year, did the company generate at least 10% of its revenue from a consumer product that causes negative health impacts acknowledged by a national government or intergovernmental body? |
Artificial intelligence | Products | [FR3.1.c] In the past fiscal year, did the company distribute a digital product that uses artificial intelligence? |
Hazardous chemicals | Products | [FR3.1.d] In the past fiscal year, did the company generate at least 10% of its revenue from selling hazardous chemicals? |
Single-use plastic | Products | [FR3.1.e] In the past fiscal year, did the company generate at least 10% of its revenue from any of these activities? (i) Selling single-use plastic products from virgin, non-renewable materials, manufactured either by the company or for the company. (ii) Selling single-use plastic packaging from virgin, non-renewable materials, manufactured either by the company or for the company. (iii) Selling products manufactured either by the company or for the company that were packaged in single-use plastic packaging from virgin, non-renewable materials. |
Agricultural chemicals | Products | [FR3.1.f] In the past fiscal year, did the company generate at least 10% of its revenue from selling agricultural chemicals, excluding naturally derived pesticides and fertilizers? |
Rights or lands of Indigenous Peoples | Operations | [FR3.1.g] In the past fiscal year, did the company's own operations have potential negative impacts on the rights or lands of Indigenous Peoples? |
Fatality or health and safety penalty | Operations | [FR3.1.h] In the past three years, has the company experienced any fatality or health and safety penalty? |
Extractive industries | Operations | [FR3.1.i] In the past fiscal year, did the company manufacture or outsource the manufacturing of products made primarily from materials from extractive industries? |
Ecosystem conversion | Operations | [FR3.1.j] In the past three years, did the company’s own operations directly involve ecosystem conversion that could contribute to habitat loss, soil erosion, or loss of biodiversity?
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Hazardous chemicals | Operations | [FR3.1.k] In the past fiscal year, did the company use hazardous chemicals in its core production processes?
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Water-intensive production | Operations
| [FR3.1.l] In the past fiscal year, did the company operate a water-intensive production in an area with water risk?
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Forced labor in its supply chain | Reputation | [FR3.1.m] In the past three years, has the company experienced litigations, penalties, or public allegations of forced labor in its supply chain? |
Public allegations of misleading marketing or greenwashing | Reputation | [FR3.1.n] In the past three years, has the company experienced litigations, penalties, or public allegations of misleading marketing or greenwashing? |
Key terms and definitions
Term | Definition |
|---|
B Corp Legal requirement | A component of the B Corp Foundation Requirements, requiring companies to: • adopt a broad purpose to create a material positive impact on society or the environment • modify director's obligations in governing documents to enable stakeholder governance. The legal requirement includes a purpose and a director's clause. |
B Lab’s Theory of Change | The idea underlying the mission of the B Global Network and movement — to create a world where business is a force for good, and companies lead efforts to transform the global economy into a more inclusive, equitable, and regenerative system. |
Declaration of Interdependence | We envision a global economy that uses business as a force for good. This economy consists of a new type of corporation – the B Corporation – which is purpose-driven and creates benefits for all stakeholders, not just shareholders. As Certified B Corporations and leaders of this emerging economy, we believe: That we must be the change we seek in the world. That all business ought to be conducted as if people and place mattered.That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all. To do so requires that we act with the understanding that we are each dependent upon another and thus responsible for each other and future generations. (B Lab) |
Further resources
Topic | Resource |
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Sectors | |
Legal | |
Release 2 - 25 August, 2025 - based on B Lab Standard v2.1 - © B Lab 2025