Deminor Wiki – B-Corp

History

B Lab was founded in 2006 in Berwyn, Pennsylvania, by Andrew Kassoy, Jay Coen Gilbert, and Bart Houlahan. The founders had previously built AND1, a basketball apparel company with progressive employment practices and charitable commitments. When the company was sold, they witnessed how new ownership could dismantle these social responsibility initiatives. This experience prompted them to develop a certification framework that would protect stakeholder-focused practices through legal commitments and ongoing verification.

The first B Corporations were certified in 2007. As of March 2025, over 9,500 companies hold certification across more than 160 industries in 102 countries. To qualify, companies must score at least 80 out of 200 points on the B Impact Assessment, which evaluates governance, worker treatment, community impact, environmental practices, and customer relations. Companies must also amend their governing documents to require consideration of stakeholder interests or, where available, register as a benefit corporation under applicable legislation. Recertification every three years ensures continued compliance.

It is important to distinguish B-Corp certification from benefit corporation legal status. A benefit corporation is a statutory corporate form available in certain jurisdictions that legally permits directors to consider stakeholder interests alongside shareholder value. B-Corp certification, by contrast, is a private certification awarded by B Lab following assessment and verification. A company may hold one or both designations; B Lab encourages certified companies to adopt benefit corporation status where legislation permits.

Litigation Funding Context

B-Corp certification has direct practical implications for claimants, law firms, and institutional investors evaluating litigation funding providers. The first commercial litigation funding companies achieved certification in 2023, establishing a precedent that others may follow as the market matures.

For claimants selecting a funding provider, B-Corp status offers independent verification that the provider has met objective standards for fair dealing, transparent pricing, and ethical governance. The certification process requires disclosure of business practices and third-party verification—offering claimants assurance beyond self-reported commitments. This is particularly relevant in jurisdictions without comprehensive regulation of the litigation funding industry, where certification serves as a proxy for regulatory oversight.

Law firms conducting due diligence on potential funding partners can use B-Corp certification as one factor in assessing operational standards and reputational risk. The certification's transparency requirements mean that a provider's B Impact Assessment score and performance across governance, worker, community, and environmental categories are publicly available, enabling direct comparison between certified providers.

Institutional investors allocating capital to litigation finance increasingly apply environmental, social, and governance (ESG) criteria to their investment decisions. B-Corp certification demonstrates verified ESG performance, potentially influencing capital allocation in favour of certified entities. As pension funds, endowments, and sovereign wealth funds expand their ESG mandates, certification may become a competitive factor in capital-raising efforts within the litigation funding sector.

Conclusion

B-Corp certification provides a verified, transparent framework for assessing whether a company meets established standards of stakeholder governance and responsible business practice. In the litigation funding context, certification offers claimants, law firms, and investors an objective benchmark for evaluating ethical commitments. As the litigation funding market continues to develop and institutional capital flows increase, B-Corp certification may emerge as a meaningful differentiator among competing providers.