FASHION LAW
From application to accreditation: The B Corp path – key insights from the UKFT webinar
In July, Fox Williams participated in a UKFT webinar, “From Application to Accreditation: the B Corp Path”, and here we share key legal insights for fashion businesses considering the journey to B Corp certification.
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B Corp, or Benefit Corporation, is a company that meets the highest standards of verified social and environmental performance, public transparency, and legal accountability. B Corps are for-profit businesses that aim to balance profit with purpose. The B Corp certification is granted by B Lab, which is a non-profit organisation that certifies companies based on their overall social and environmental performance. B Corp certification has been gaining momentum globally, and in the UK, companies are increasingly embracing this framework to demonstrate to customers, employees, and the wider public their commitment to social and environmental responsibility.
Why pursue certification, you may ask? Certification signals a genuine and legally embedded commitment to environmental and social impact, moving beyond traditional corporate social responsibility statements. Employees increasingly favour organisations that demonstrate alignment with personal values and responsible business practices, and certification enhances consumer trust, bolsters brand value, and can create opportunities for partnerships, collaborations, and investment.
Legal requirements for UK businesses
Business leaders are increasingly calling for a shift away from the shareholder primacy doctrine in favour of a model known as stakeholder governance; this practice prioritises all stakeholders – customers, workers, suppliers, communities, investors, and the environment – in decision making. Stakeholder governance ensures that businesses are accountable to people and the planet – and this accountability is a key requirement for B Corp companies. The primary legal step for UK companies is to amend their articles of association. In practice, this usually involves adopting B Lab’s model wording, which codifies stakeholder governance obligations.
Before amendments can be made, it is critical to review existing shareholder agreements
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documentation must be provided to substantiate responses within the BIA. B Lab may also conduct follow-up enquiries or site visits, particularly in the case of larger or more complex organisations. From a practical perspective, our panellists emphasised that the BIA can be as valuable as certification itself. Several businesses reported that the assessment uncovered blind spots in areas such as supply chain transparency or employee wellbeing, prompting
or investment agreements. Many of these documents include provisions requiring investor majority consent – or the consent of specific investors – for constitutional changes. Failure to obtain such consent may prevent amendments from being lawfully adopted, making it critical to involve investors at the outset. By framing B Corp as a mechanism for safeguarding long-term brand value and enhancing governance, companies were able to secure the necessary approvals without significant resistance.
The certification process Once governance and shareholder approvals are in place, companies progress to the B Impact Assessment (BIA). This is a comprehensive evaluation of the business’s social and environmental performance across five areas: governance, workers, community, environment, and customers. Key elements include:
Completion of the BIA: This online assessment evaluates a company’s policies and practices across a range of areas, including governance structures, employee benefits, supply chain transparency, charitable initiatives, and environmental management.
Achievement of the scoring threshold: To qualify for certification, an applicant must obtain a verified score of at least 80 points out of a possible 200.
Verification by B Lab: Supporting
improvements even before the application was submitted. Others noted that the exercise created new internal momentum, bringing different departments together to deliver on shared sustainability goals.
The BIA should therefore not be regarded as a compliance exercise alone. For many businesses, it functions as a strategic diagnostic, highlighting areas of strength and exposing opportunities for improvement. Even prior to certification, companies often derive measurable benefits from the process of self- assessment.
Looking ahead
With updated B Corp standards due to be implemented, companies can expect more prescriptive requirements in core areas such as climate action, worker wellbeing, and risk management. Early engagement with the BIA positions businesses to adapt to these changes and strengthen their governance structures accordingly.
Anjali Aravindhan is a Corporate Associate and Paul Taylor is a Corporate Partner at Fox Williams LLP (
www.foxwilliams.com).
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