Governmental and private organizations both award business certifications after conducting a review process to ensure that the company meets a set of performance standards. All aspects of business operations are covered by certifications. Businesses are certified by organizations and government agencies that assess their compliance with municipal, regional, national, and international standards and laws. Other factors, such as the level of diversity in the business’ workforce or ownership; annual revenues; achievement of environmental benchmarks; compliance with financial and regulatory agencies’ requirements; and acceptable levels of credit worthiness, may be considered depending on the type of business certification.
Municipal and regional business certifications are frequently required before a business is granted a license to operate at the local level. Businesses that serve vulnerable populations, such as young children or seniors who require physical assistance, are frequently required to obtain special business certifications before being granted a license. A government agency is frequently responsible for issuing these licenses. Companies that provide medical, dental, or financial services, for example, are frequently required to obtain special certifications and licenses before beginning operations.
Many jurisdictions also require businesses that serve food and beverages or sell hazardous chemicals to be certified. Certifications that designate a small business can help local businesses. Environmental certification programs have also become more popular. Businesses that adopt sustainable business practices may be eligible for incentives from some municipalities.
Some government agencies issue business certifications to recognize adherence to national laws, such as environmental safety. Women and minorities-owned businesses may be eligible for special status, which grants them certain advantages. Certifications are frequently given by government agencies as proof of adherence to environmental regulations. The BioPreferred Program of the United States Department of Agriculture, for example, requires the company to be certified by the Environmental Protection Agency.
On a global scale, the International Charter offers a variety of business certifications that recognize and reward integrity in business activities in order to promote best practices. When certifying a business, the organization follows a set of core principles. Consumer focus, leadership quality, operational proof of performance, and social and environmental responsibility are among the factors assessed.
The International Charter’s certifications are divided into three categories based on the size of the company and are available to qualified small, medium, and large businesses. For large, publicly traded corporations, there are additional certifications. E-commerce businesses are also certified by the International Charter, which designates them as “Safe to Shop” establishments.