CEO brands B Corp status ‘greenwashing’ as she gives up title
The founder and chief executive of a London-based pet food brand has said she’s decided to give up her firm’s B Corp status after criticising the coveted certification as “little more than a marketing badge and greenwashing”.
Entrepreneur Aneisha Soobroyen set up Scrumbles in 2018 and achieved the status a year later.
However, the CEO has now said she’s not going to renew the certification because the status “no longer holds the weight it once did”.
A B Corp is a for-profit business certified for its social impact by B Lab, a global non-profit organisation.
In a post on social media, Soobroyen added that “companies with questionable ethics” have gained certification in recent years as its membership has grown, diluting what it stands for.
She also said that instead of paying a £8,500 recertification fee, she would donate the money directly to Save the Children.
According to B Lab, there are 9,500 certified B Corporations in more than 102 countries and 160 industries.
B Corp ‘little more than a marketing badge and greenwashing’
In a post on LinkedIn, the CEO said: “We’ve taken the decision to not renew our B Corp certification.
“While we were proud to be one of the first pet food brands to certify in 2019, the certification no longer holds the weight it once did.
“It has started to feel like little more than a marketing badge and greenwashing rather than a true mark of ethical business.
“B Corp was meant to stand for businesses that put purpose over profit. But as we’ve watched its membership grow, we’ve seen companies with questionable ethics gain certification, diluting what the certification represents. Even individual contractors can now certify.
“B Corp is supposed to separate the good from the bad, but in its current state this doesn’t hold true.
“Our commitment to responsible, sustainable pet food hasn’t changed. The decision to step away from B Corp is about principles, not convenience.
“We don’t need a logo to tell us to do the right thing. Instead of paying a £8,500 recertification fee, we’re donating it directly to Save the Children.”
She added: “We’re not interested in scoring points on a checklist. We believe in making real decisions that truly benefit our employees, customers, and the planet.
“B Corp isn’t what it used to be. But business as a force for good? We’re still all in.”
‘B Corps are not claiming to be perfect companies’
In response, a B Lab UK spokesperson said: “The B Corp community is modelling a new economic system governed by the shared principles of aligned stakeholder interest.
“Every company that becomes a B Corp meets high social and environmental standards and makes a legal change to ensure this expanded duty of care is embedded in decision-making.
“The fact that such a diverse range of businesses can embrace stakeholder governance is further proof that our entire economic system can change — and it already is.
“B Corps are not claiming to be perfect companies; instead they are willing to measure their impact, identify opportunities for improvement, and implement meaningful change.
“The new standards for B Corp Certification will be the most significant shift since B Lab’s inception.
“They will set out minimum standards for all B Corps to meet across impact areas including human rights, workplace culture, fair wages, climate action and environmental stewardship.
“The UK is home to one of the largest and fastest growing B Corp communities in the world, and we’re looking forward to working with our community as they embrace these new standards.”