Dr. Bronner’s is a California-based, family-owned business known worldwide for its environmentally and socially responsible soap products. They’ve attracted recent attention for choosing to leave the international B Corp accreditation movement. That’s just what this decision, announced last week by chief exec David Bronner, represents after a ten-year period of membership in the group. With 323 employees, Dr. Bronner’s chose to go out on a limb. Rather than paying B Corp the annual recertification fee of £8,500, they decided to donate it directly to Save The Children.
The shift comes in the wake of several months’ worth of criticisms about B Corp’s certification standards, especially as they’re applied to multinational firms. Public comment from David Bronner had previously blasted the organization as not tough enough on those big companies. He emphasized that for B Corp to be credible, it needs to set stiff standards so that there really are social and environmental do-gooders among its members.
In a remarkable show of solidarity, Bronner revealed that 14 other companies have pledged to follow Dr Bronner’s lead, indicating a potential shift within the industry regarding B Corp’s relevance. Dr Bronner’s famously condemned Nespresso’s certification in 2022, a brand owned by the Swiss food behemoth Nestlé, for the increasing misalignment between their ethical practices and reality. Nespresso faced accusations in 2020 that some of its coffee suppliers in Guatemala were employing underage children, raising serious questions about its commitment to fair labor practices.
B Corp is widely recognized for its tough certification process that encourages environmental sustainability and socially responsible business practices. It is making historic changes to strengthen those standards. The implementing organization plans to roll out third-party verification of companies’ performances. It will set minimum standards in seven market transformation areas that are necessary to achieve certification. First, you double down on equity. These wrap around and support each other, including purpose and shareholder governance, fair work, justice, equity, diversity and inclusion, human rights, climate action, environmental stewardship, government affairs, and collective action.
That’s the crux of the matter, as Chris Turner, the Chief Executive of B Lab UK, explained. These revisions will increase expectations for companies seeking certification. Currently, the B Corp points system is set to expire in 2026. This amendment will bring in more evidence-based evaluation practices.
Dr. Bronner’s has now gone beyond the B Corp framework. Despite what seems like a pretty big signal, industry observers don’t think this move will hurt their sales. As a result, the company has constructed an admirable reputation over the decades for its good faith towards ethical business that emphasizes environmental stewardship. This reputation could go a long way toward lessening any damage that would result from stepping away from an established accreditation like B Corp.