Beyond the Label: Navigating Corporate Certifications and Authentic Ethical Practices
Dr. Bronner’s, a well-known advocate for fair trade and ethical business practices, recently made waves by dropping its B Corp certification. While many businesses still see these certifications as badges of honor, Dr. Bronner’s bold move raises important questions about the integrity and value of corporate certifications today. Can certifications truly reflect the ethical practices of a company, or do they simply serve as a marketing tool for businesses looking to appear socially responsible without substantive change?
Dr. Bronner’s Exit from B Corp:
Dr. Bronner’s announced its decision to drop its B Corp certification, citing concerns over B Lab's standards. The company expressed that B Lab's certification has become compromised, allowing companies to use the B Corp label for marketing purposes without implementing meaningful changes to their practices. Dr. Bronner’s has long advocated for stricter certification requirements, particularly regarding the supply chains of multinational corporations. They believe that B Lab should require certified companies, especially large multinationals, to certify all major supply chains to credible eco-social certifications to prevent the B Corp certification from being misused by companies to hide unsustainable and unjust corporate practices. (info.drbronner.com)
Service vs. Product-Based Businesses:
One key distinction that must be made is that B Corp certifications for service-based companies and product-based companies, particularly those with complex global supply chains, operate in very different universes. Service-based businesses might be able to align more directly with B Corp standards and easily demonstrate the social and environmental impact of their operations. However, for product-based companies, especially those like Dr. Bronner’s, that rely on global supply chains, the challenges are much more complex. Sourcing ingredients from around the world introduces layers of complexity that B Corp certification may not fully address. The ethical and environmental issues surrounding these supply chains often involve trade-offs that a certification can’t capture entirely.
Greenwashing Risks:
As corporate certifications become more widely recognized, the risk of "greenwashing" increases. Many large companies with vast resources use certifications as a form of branding, with little regard for the true impact on their operations or communities. This has led to confusion and skepticism among consumers who believe that the ethical labels they trust may not be as meaningful as they once thought.
The Need for Genuine Ethical Practices:
Certifications are only as valuable as the practices they represent. While B Corp and other certifications can be helpful in guiding companies towards better practices, they should never be seen as the end goal. Authentic ethical practices must be embedded in the culture of a business, rather than merely serving as a marketing tool. For companies that truly want to demonstrate their commitment to social and environmental responsibility, it's time to move beyond the label and focus on substantive actions.
Dr. Bronner's: Pushing the Envelope:
We applaud Dr. Bronner’s for showing up and pushing the envelope. Their decision to step away from the B Corp certification isn’t a retreat from ethical business practices—it’s a call for more rigorous, meaningful engagement with ethical issues in a way that aligns with their own values. By taking this stance, Dr. Bronner’s is encouraging the industry to rethink what it means to be truly ethical in a world where certifications alone can no longer be trusted to reflect the full complexity of a company’s values and actions.
Pushing the Movement Forward:
We believe that moves like Dr. Bronner’s decision, alongside conversation, conflict, disagreements, and action, push the whole movement forward. These moments help us collectively re-examine what it truly means to operate ethically and to hold ourselves to higher standards. We believe in the power of B Certification and believe that the standards will only improve over time as more companies challenge the status quo. We are fans of Dr. Bronner's, and we’re fans of the movement that pushes for more genuine, impactful change.
Dr. Bronner’s: A Beacon of Innovation in Ethical Business:
We are big fans of how authentic, complete, and innovative Dr. Bronner’s is in the pursuit of ethical, sustainable business. They exemplify what it means to be a purpose-driven company—constantly finding new ways to do more and do better. We learn from them all the time and love following their social accounts.
One of their standout initiatives is the annual “Dumpster Dive” event. This hands-on activity involves employees sorting through the company’s waste to identify opportunities for better recycling, composting, and waste reduction. It's a powerful demonstration of their commitment to transparency and continuous improvement. As noted in their blog, “We got into a conversation about bottle labels and why the company is currently using stickers with disposable backing and hasn’t found a viable alternative yet. We learned our awesome packaging team is on the case and still looking.” (info.drbronner.com)
This level of engagement—from the CEO to the newest hire—sets a high bar for authenticity and accountability. It’s this kind of leadership that inspires us and reinforces our belief that true ethical business practices go beyond certifications—they are embedded in every action and decision.
Industry Shifts:
Dr. Bronner’s departure from the B Corp community is not an isolated incident. Other companies are beginning to re-evaluate the worth of certifications and are focusing on more direct ways of creating social and environmental change. Whether it’s through direct community engagement, transparent supply chain practices, or innovative business models that prioritize sustainability, companies are finding new ways to demonstrate their commitment to ethics.
Conclusion:
At Up & Over Advisors, we believe that authenticity in business is paramount. We don’t just look for companies with impressive certifications; we look for businesses that have a genuine commitment to their values. For businesses considering an exit or acquisition, we encourage you to think beyond the label and focus on creating a lasting impact through your actions. Certifications may help you get noticed, but true ethical change starts from within.
