News & Views

Is B Corp status right for your law firm?

B Corp certification is gaining traction across many industries and the legal sector is no exception. For law firms, becoming a certified B Corp demonstrates a commitment to balancing purpose and profit. But is it right for your law firm?

The process which applicants must follow to obtain B Corp status, whilst challenging, is now reasonably well established and, as we argued in an earlier article, is about corporate governance and culture.

The benefit of B Corp status

At its core, B Corp certification reflects a firm’s commitment to high standards of social and environmental performance, corporate governance, and stakeholder accountability. It will support your firm in developing a stronger reputation in the market as not just being profit driven but demonstrating a greater purpose in making a positive impact on society and the environment by being ethical, responsible, and transparent. In doing so, your firm can benefit in a number of ways, including:

Employee engagement and talent: There has been a trend of candidates considering working for companies who are socially responsible and commit to ethical practices, which can also create a more positive working environment, increasing morale, engagement and retention.

• Attracting clients: Clients and prospective clients who are conscious of sustainability and their own ethical and social practices, are looking to engage with companies who take the same approach and will take preference with those that align with their own values. The result being that they are more likely to choose a firm that is B Corp certified over one that isn’t. It can also build trust and demonstrate the firm’s integrity to meet high standards.
• Global network: You’ll gain access to the “B Hive” global network, opening doors to valuable partnerships and collaborations with other mission-driven businesses.
• Growth & succession: Demonstrating that your firm cares about sustainability will increase the likelihood of thriving over the long-term.

Challenges your firm might encounter

Before pursuing certification for your firm, it’s crucial that you consider the potential downsides, as well as the inherent risks your firm might face in both pursuing and obtaining B Corp status, which include:

• Committing resources: Certification is rigorous and can take months, if not longer, to complete. Your firm must be prepared to dedicate time, personnel, and financial resources, which might be better served in other areas of your business.
• Ongoing commitment: Your efforts won’t end on certification, as your firm will need to recertify every three years. For smaller firms especially, this commitment may become quite burdensome where such resources are limited.
• Governance issues: B Corps must amend their governing documents to reflect stakeholder commitments. These changes could affect your firms decision-making flexibility or inhibit your ability to act swiftly when issues arise.
• Reputational damage: Becoming a B Corp invites public and client scrutiny over whether your firm truly adheres to its commitments, and any perceived failure to meet such standards could harm your firm's reputation, or even invite accusations of ‘green washing’. 

Is B Corp certification right for your law firm?

While the certification process may be challenging, the inherent benefits for those firms which are deeply committed to operating as a B Corp can make it well worth the effort.

Nonetheless, if your firm cannot truly dedicate long-term commitment and necessary resources to meet the certification requirements, then it’s not right for you.

If there are parts of being a B Corp which appeal to you but the onerous certification process and administrational burden for ongoing review deters you, there is nothing to prevent you from adopting practices within your firm to demonstrate dedication and consciousness to your social and environmental impact without the need to be globally recognised as a B Corp. This will still attract talent, clients and support the reputation of the firm, without being in the ‘inner circle’.

Ultimately, before deciding whether your firm should pursue B Corp status, your leadership will need to have a very clear understanding of why you’re pursuing certification, what you hope to achieve in doing so and to do it for the right reasons as it’ll impact every aspect of your firm and its culture.

If you’d like to discuss this in more detail, please email Michael McKenna or call 0151 906 1000.