FAQ

Frequently Asked Questions

At Good 4 Business, we are passionate about guiding businesses towards B Corp Certification.

In our FAQ section, you will discover clear explanations for items featured in the B Impact Assessment and definitions for general impact measurement terminology.

Whether you are starting your sustainability journey or looking to enhance your existing practices, we provide clarity and guidance to make a positive impact.

Q.1 What is an Impact Business Model (IBM)?

A business can be structured in various ways to achieve a desired positive impact or result for one of its stakeholders. This could be based on the type of product it offers, a specific process or activity it engages in, or even the overall organisational structure of the business.

Q.2 What is a stakeholder?

In the B Impact Assessment, the term stakeholder refers to anyone who is affected or has the potential to be affected by the actions of a company. This can include workers, customers, the community, and the environment.

A stakeholder can be any entity that has an interest that is affected or could be affected, either positively or negatively, by the activities of the company. Examples of stakeholders may include civil society organisations, business partners, trade unions, shareholders, other investors, customers, employees and other workers, governments, non-governmental organisations, suppliers, vulnerable groups such as future generations, and the environment, including species.

Q.3 Who are underrepresented groups?

Historically, certain groups of people have faced obstacles and discrimination that have limited their access to economic opportunities. The nature of these obstacles may vary depending on the context and location. For instance, social identities related to Indigenous and First Nations Peoples, immigration status, caste, religion, or tribe may also be pertinent depending on the situation.

It is important to note that this list is not exhaustive and other identities may need to be considered based on a company’s context, region, or local community.

Q.4 How is a worker defined in the B Impact Assessment?

Employees who work full-time, part-time, or on a temporary/seasonal basis, as well as independent contractors, are included in this count if they work for at least six months and more than 20 hours per week.

Depending on certain factors, working owners may also be considered workers (see the definition of working owner). However, interns and apprentices are not included in the worker count, as defined by these standards.

Q.5 What is a working owner in a business?

Founders or partners who work at a company and own 10% or more of the business are known as working owners. If a company’s workforce comprises working owners who own 10% or more of the company, the company is considered a sole proprietorship with no employees.

However, if a working owner with additional non-working owner staff is on the payroll, the working owner is counted as an employee. Similarly, if a working owner is not on the payroll but has additional non-working owner staff, the working owner is still counted as an employee.

Q.6 What is a well-defined outcome when measuring impact?

Identifying the most appropriate aspect of well-being or natural environment condition to measure is crucial. For instance, a healthcare organisation can prioritise the outcome of good health before determining a specific health condition. Metrics are then selected periodically to measure the outcome, such as blood sugar level, self-reported mental health, or body mass index. To identify the well-defined outcome, organisations engage with stakeholders to determine the outcome that is of most value to them. Social Value International encourages this practice to help identify the well-defined outcome.

Source: Social Value International (SVI)

Q.7 What is a science-based target?

Objectives that are measurable, actionable, and time-bound should be based on the latest scientific findings. These objectives enable individuals and organisations to align with Earth’s limits and the sustainability goals of society.

Source: Science-Based Targets Network

Q.8 What is JEDI?

Justice, Equity, Diversity, and Inclusion (JEDI) are principles and values that relate to social justice, equity, diversity, and inclusion in various settings, including businesses, organizations, and society as a whole.

Interestingly, like the fictional Jedi Order in Star Wars, JEDI principles are also dedicated to protecting peace and justice. The Jedi Order in Star Wars was famous for its mastery of lightsabers and adherence to a code of ethics as guardians of peace and defenders of the weak.

Q.9 What is an independent contractor?

When an individual works independently and provides their services to a company, they are commonly known as a freelancer. However, there are certain criteria that determine their classification. If an independent contractor works for a company for an indefinite period or for more than six months, working for more than 20 hours a week, they are considered workers. On the other hand, if the independent contractor does not meet these criteria, they are classified as suppliers.

Q.10 What is meant by the highest governing body?

The highest governing body of an organisation is ultimately accountable for the entity, whether or not it is explicitly established. It can take on various formats, such as a board of directors, advisory board, sole director, joint or numerous directors or trustees. In ISO management system standards, it is referred to as “top management” who reports to, and is held accountable by the highest governing body.

Q.11 What is a manager?

This refers to a person within a company who holds a position of authority and is accountable for ensuring that other team members are meeting their performance targets or that important operational processes are running smoothly.

Q.12 What is difference between a agriculture grower and livestock producer?

An agriculture grower has a majority of raw input materials for companies that run a farm or agro-processing facility or directly source crops from farmer-growers. This includes fruit or vegetable farms, farmers’ markets, coffee plantations, and coffee roasters. However, livestock producers, such as poultry, pigs, sheep and cattle are classified under ‘Manufacturing’.

Q.13 What is a theory of change?

A strategy that describes how a particular action or a group of actions is anticipated to bring about particular improvements, relying on a causal analysis based on the available evidence.

Source: United Nations Development Group

Q.14 What is governance?

A company’s direction and control are guided by a set of regulations, procedures, and methods known as corporate governance.

Source: Institute of Chartered Accountants in England and Wales (ICAEW)

Q.15 What is meant by impact?

Organisations’ conduct can have consequences on both individuals and the environment.

Source: Impact Management Platform

Q.16 What is an output?

Organisations’ products, services, and by-products are a direct outcome of their activities.

Source: Impact Management Platform

Q.17 What is an outcome?

Usage #1

Organisations’ activities and outputs can result in changes or events that create a causal link between them and their impacts on people and/or the natural environment. This link provides an understanding of how organisations’ actions and outputs affect the world around them.

Usage #2

The actions of the organisation and external factors influence the level of well-being experienced by people and the condition of the natural environment.

Source: Impact Management Platform

Q.18 What is meant by sustainable?

The Brundtland Commission defines sustainability as meeting the present needs without compromising the ability of future generations to meet their own needs. The Science-Based Targets Initiative and Kate Raworth state that outcomes for people are sustainable if they fall within the acceptable range determined by societal thresholds, and outcomes for the natural environment are sustainable if they fall within the acceptable range determined by ecological thresholds. According to the Cambridge English Dictionary, sustainability is the quality of being able to continue over some time.

Source: Brundtland Commission; Science-Based Targets Initiative; Kate Raworth; Cambridge English Dictionary

Q.19 What is well-being?

Being in a happy, healthy, or prosperous condition is referred to as the state of well-being. The OECD Well-being Framework explains that people’s most significant concerns are encompassed by the 11 dimensions of well-being.

Source: Oxford English Dictionary, Organisation for Economic Co-operation and Development (OECD)

Curious to explore further?

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