An Exploratory Analysis of B-Corp Decertification Patterns

Abstract

More than 4,000 firms worldwide have demonstrated a commitment to corporate social responsibility through B Corp certification, yet the drivers of B Corp decertification remain poorly understood. This study uses the B Corp Impact Data dataset and applies a two-stage least squares (2SLS) regression model to examine whether decertification stems from voluntary firm choice or failure to meet B Lab’s 80-point certification threshold. Findings show that firms with three or more successful certifications are more likely to decertify voluntarily, while those with fewer certifications may lack the knowledge or capacity to maintain certification. Results also indicate that firms with balanced performance across the five B Impact Assessment (BIA) categories—community, customers, environment, governance, and workers—are more likely to sustain certification. Firm size and score variability further influence outcomes. These findings highlight the value of supporting firms through at least three certification cycles and offer practical implications for B Lab. This research provides a reliable foundation for future studies investigating voluntary versus involuntary decertification within the global B Corp community.