B Lab acknowledges and is deeply sympathetic to the fact that the farmers affected by this decision find themselves in a difficult financial situation that may affect their livelihood and well-being.  Certified B Corps are expected to make decisions with consideration of the impacts on stakeholders in mind.  While these decisions may still nonetheless lead to a potential negative impact on a particular stakeholder group, it is also considered how a company engages in ways to mitigate that negative impact to the extent possible.

Upon reviewing the information available, including the information shared in the petition, and considering the stakeholder concerns raised and the impact on affected farmers and communities, we have determined that Danone North America’s certification is upheld with disclosure of this situation required on its B Corp public profile in order to be transparent with stakeholders around the reasoning for and impacts of its decisions and document the management practices in place so that stakeholders can make their own informed judgment about its impact and the adequacy of measures taken. You may access the information required in their Disclosure Report on their profile here. B Lab will continue to monitor the situation, and if new material information arises related to the decision, a complaint process may be reopened.

For more context on our decision, a company must achieve a minimum verified score of 80 points in the B Impact Assessment in order to become a B Corp, which is designed to help measure and manage a company’s positive impact across five key impact areas: governance, workers, community, customers, and the environment. The B Impact Assessment awards credit for specific, positive practices of companies to determine their eligibility for the certification, but does not stipulate or mandate specific individual positive practices.  For example, while the B Impact Assessment acknowledges as best practices, among other things, supporting small scale and local suppliers, maintaining long term relationships with suppliers (average tenure), and purchases from organic producers, these practices are not required components of the certification if, as described above, the company is meeting the overall score of 80 points.

In addition, B Corp Certification also includes a review of potential negative practices that may warrant further action or ineligibility for the certification, and has a complaint process designed to allow stakeholders to raise concerns about existing B Corps who may be violating the spirit of the certification. B Lab investigates material, credible, and specific complaints, with the possible outcomes of any complaint including no further action, additional transparency required, remediation required, or ineligibility for the certification.

B Lab uses feedback from stakeholders like yourself not only to determine whether or not an individual B Corp is in violation of the certification requirements, but also to inform the development of the certification requirements over time. We are currently undertaking a comprehensive review of the B Corp certification performance requirements and have recently gone through an extensive stakeholder consultation process regarding the possibility of additional specific minimum requirements as a component of the certification. There will be ongoing opportunities to submit feedback throughout this review. Further details can be found here.  Thanks again for your interest and engagement, and we encourage you to provide feedback to continue to improve our standards.

Best,

B Lab Standards Management Team