The guidance below supports understanding the integration of the baseline requirements into the new B Lab Standards (focus on XXL companies). Please see the overview guide on more information.
The V6 Baseline Requirement:
Tax & Government Affairs Disclosure: A disclosure statement on the company’s tax philosophy or approach and government affairs (such as lobbying or advocacy) including the company’s overall effective tax rate, that is overseen by the Board of Directors.
Maps to the following new B Lab Standard Sub-Requirements:
The former government affairs policy requirement has been restructured under the Government Affairs & Collective Action Impact Topic, and replaced with two specific policies:
GACA1.1 The company has a public policy on responsible lobbying. |
Size | Sector | Industry | Year | Eligible for equity Mechanisms |
XX Large X Large Large Medium Small Micro Company without workers | All | All | Year 0/Year 3/Year 5 | None |
Changes in Compliance Criteria: | Companies are required to adopt a lobbying policy that outlines their approach to responsible advocacy, ensuring that all lobbying activities: Aim to positively impact society and/or the environment Are based on reliable or scientific data Address financial and in-kind political contributions, anti-corruption, and anti-bribery practices Include transparency on work with intermediary organizations Detail governance, control, and risk management practices related to lobbying
Importantly, companies cannot achieve or maintain B Corp Certification if they directly lobby against their stated purpose of creating a positive impact.
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Application to Independently Certifying Subsidiaries: | Policies must be embedded at the highest governance level within the certifying subsidiary. If referencing an out-of-scope parent policy, the subsidiary must provide evidence of rollout, enforcement and accountability mechanisms.
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Related Sub Requirements: | GACA1.2: Larger companies must publicly disclose lobbying positions and political contributions annually. GACA1.3: Smaller companies must also publicly disclose lobbying positions and political contributions annually. GACA3.2: XX Large companies must publicly disclose country-by-country tax reporting each fiscal year.
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GACA3.1 The company has a public policy on responsible taxes. |
Size | Sector | Industry | Year | Eligible for equity Mechanisms |
XX Large | All | All | Year 0/Year 3/Year 5 | None |
Changes in Compliance Criteria: | |
Application to Independently Certifying Subsidiaries: | |
Related Sub Requirements: | |