As companies nationwide face growing pressure from consumers to adopt ethical business practices, many in Durham have turned to B Corp certification, a designation awarded to firms meeting high standards of environmental impact, social responsibility and corporate governance.

For some businesses – such as Happy Dirt, a local organic produce distributor that earned B Corp certification in 2016 – certification is a strategic move to differentiate themselves, attract talent and build consumer trust.

Durham’s B Corp ecosystem is expanding, supported by networks like B Local Triangle, which facilitates connections, collaboration and guidance through the certification process.

The city’s tight-knit community, entrepreneurial mindset and strong sustainability values create fertile ground for the movement, according to Katherine Koonce, engagement lead for B Local Triangle.

Many businesses use the B Impact Assessment, a free tool developed by the nonprofit B Lab to measure environmental and social impact, even if they don’t immediately pursue certification, Koonce said.

The assessment scores companies across areas like worker treatment, community engagement, environmental impact, and customer benefit, offering a comprehensive look at how a business operates beyond profit.

Yet challenges remain.

The certification process is both costly and time-intensive, requiring businesses to undergo rigorous evaluation, said Koonce and Sandi Kronick, founder of Happy Dirt.

For many, becoming a B Corp is more than a label, it’s a declaration of values.

“I think the most tangible [benefit] is that our team is aware that we put our money where our mouth is, like, our values,” Kronick said. “The B Corp certification is like this overarching umbrella that everything else we do, how we take care of our team, how we care about our vendors, falls under.”

Koonce adds B Corps certification provides a clear framework for companies to align their operations with their principles.

“There’s a ton of avenues that motivate people to go for the B Corp assessment,” she said. “There are a lot of things in our world right now that we want to find solutions for, climate change, racial justice, DEI initiatives that are under attack. Having something to point to and say, ‘No, we stand for these things,’ is powerful.”

Still, not every business is ready to take the leap. Some use the B Impact Assessment as a benchmarking tool for years before officially certifying, while others abandon the process due to financial constraints or difficulty determining whether certification would be cost effective.

To become a B Corp, businesses must score at least 80 out of 200 points on the B Impact Assessment across four categories: governance, workers, community and environment.

Businesses also must meet legal requirements that embed stakeholder governance into their structure and complete a verification process that may include documentation, interviews or audits. They must also undergo a background check, maintain transparency and pay an annual certification fee based on company revenue.

Certified B Corps and must recertify every three years, often needing continuous improvements to maintain their status as evolving standards demand increased accountability.

Starting this year, certified companies will have to focus on seven impact areas, such as combating climate change and ensuring living wages.

For example, the new B Impact Assessment includes Climate Action, where companies develop plans to limit global warming to 1.5°C, and Fair Work, which emphasizes providing quality jobs and fostering positive workplace cultures.

“These new revisions provide a great platform to show that B Lab itself continues to evolve and seeks to make the process more rigorous and relevant with each iteration,” said Jessica Yinka Thomas, director of the Business Sustainability Collective at NC State and leader with B Local Triangle.

Beyond certification, Durham’s B Corps form part of a broader network of mission-driven businesses that share resources, collaborate and support one another.

Koonce said, in her experience, B Corps often find creative ways to partner.

One example is CompostNow, a certified B Corp.

The company partners with numerous local B Corps, including Happy Dirt, to divert organic waste from landfills and transform it into nutrient-rich compost. By providing composting services to restaurants, grocery stores and offices, CompostNow enables businesses to align their operations with their sustainability commitments.

Companies such as Happy Dirt and CompostNow demonstrate that profitability and purpose can coexist, inspiring others to follow suit, Koonce said.