From Inspiration to Disappointment: Our Journey as a B Corp Member

Their vision was very much aligned with our vision at Critical, including some initiatives that we had already implemented, and others that we were inspired to reach for. It felt like we were speaking the same language – using business for good. Yes.

At the time that we applied for B Corp certification, the process was rigorous. We have many certifications at Critical. This was something different. It was a movement of like-minded people, lined up behind shared values and the energy that comes from effecting positive change. It reminded us early days at Critical – full of passion and pride.

B Corp was founded in 2006 in the United States by three friends who shared a vision to make business a force for good. Today, B Corp is an international network that has grown to include B Lab, the certifying arm of B Corp. B Lab is managed in different geographies by different teams of people who bid on and are rewarded with a license to manage the program for a period. Companies that are certified as B Corps in Portugal fall under the jurisdiction of the B Lab Europe franchise, headquartered in Amsterdam.

The B Corp Portugal community had grown organically since its inception in 2015 to the top 10 nations in Europe in terms of B Corps per million companies. However at the end of 2022 the community was notified by B Lab Europe that a change in vision had been decided for us in Portugal and the community would be led by “highly motivated sustainability consultants.” This struck us as autocratic, technocratic, and the exact opposite of the entrepreneurial spirit with which it was founded, and under which we were certified.

The discussions that ensued between the B Corp community in Portugal and B Lab Europe only added to our disappointment and disillusionment. For us, the way B Lab Europe managed the process, and communicated their decision undermined the principles of trust, transparency, inclusivity, and collaboration that are the very essence of B Corp.

And so we took some time to try to learn more about their vision for the future, and to reflect on what that would mean for us.

In the 25 years since we founded Critical, there have been many moments that require reflection, and many difficult decisions to be made. But as the company has grown, and as we’ve grown personally on our own journeys, we’ve learned that what helps us move forward with confidence and clarity is living from our values. While it can be tempting to turn a blind eye to misalignments, we’ve learned that doing so is a sure way to bring future discomfort, pain or regret.

Ultimately, we decided that our values no longer align with the way the B Corp values are operating in the real world and decided to abandon the B Corp certification.

This decision naturally does not change a millimetre in Critical Software's commitment to building a better, more sustainable, more supportive, and safer world, in the spirit of corporate citizenship and "business for good" that has always guided us.

We will proudly continue to pursue other business sustainability ratings such as Ecovadis which focus on meeting corporate sustainability goals in the context of the value chains we are part of.

We are also proud to continue to be a Benefit Corporation. A Benefit Corporation differs from a standard corporation (C-Corporation): It is a for-profit business entity, legally defined in the US and other jurisdictions, whose legally defined goals include the positive impact on society, workers, the community and the environment, in addition to profit. On the other hand, the B Corp is a private certification scheme, run by a nongovernmental business called B Lab, whose label was inspired by Benefit Corporations.

More importantly....

• We are proud of our 5% pledge whereby we direct 5% of our profits annually to impact communities around us.
• We are proud of our 10x pledge whereby the difference between the highest salary and the lowest salary in the company cannot be more than 10x.
• We are proud of our pioneering role in integrating neurodiverse young people in the IT workforce in Portugal.
• We are proud of supporting our families through extended fully-paid paternity and maternity leave.
• We are proud of our role in supporting better education for disadvantaged children in “Companhia do Estudo”.
• We are proud of our pioneering role in supporting and funding the first TUMO Academy in Portugal.
• We are proud of our Investors in People accreditation in the UK.

And finally, and maybe most importantly, we are proud that we collectively live the Critical values even when it’s difficult.

Onward.

João Carreira

Gonçalo Quadros