Sometimes, a company fails to meet an applicable requirement of the B Lab Standards. This is known as a "nonconformity", and can be categorized as either minor or major.
A minor nonconformity is a single, observed lapse. For an initial audit, the company must provide a root cause analysis and submit a corrective action plan. These must be resolved by the next audit. If a minor non-conformity is not addressed, it is elevated to a major nonconformity.
Example of minor nonconformity: Some employees were found to not receive a living wage due to the timing of their hiring, and it was determined to be an oversight.
A major nonconformity is a more material finding, such as a systemic failure to meet a requirement.
Example of major nonconformity: The company is found to not have a fair wage methodology in place for any staff under the Fair Work Impact Topic.
A company must submit a corrective action plan, and resolve the major nonconformities within six months from receipt of the Corrective Action Report. If that happens, the assurance provider makes a positive certification decision and officially issues the company with a Certificate.
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