Responsible Influence: The Government Affairs & Collective Action (GACA) Standards, Simplified

Policy doesn’t just emerge from governments; it’s shaped every day by the choices companies make with their power and resources. B Lab’s Government Affairs & Collective Action (GACA) Impact Topic invites businesses to see that power as a form of stewardship: to use their influence not to protect narrow interests, but  to strengthen the social and environmental systems we all rely on.

The GACA Standards set a new benchmark for how companies engage in public life: ensuring their advocacy is transparent, their partnerships principled, and their contributions aligned with justice, sustainability, and stakeholder well-being. In an era when corporate decision-making often unfolds behind closed doors, GACA calls on companies to bring their public engagement into the open, and to take responsibility for the outcomes it shapes.

These standards apply to all Certified B Corps, scaling with both size and reach. Larger enterprises are held to heightened expectations of transparency, rigor, and accountability. The result is a shared framework that matches responsibility to impact: the greater a company’s reach, the greater its duty to use it wisely.

At their core, the GACA Standards define what responsible corporate advocacy looks like through three commitments:

• GACA1. Responsible Lobbying & Policy Engagement: ensuring advocacy aligns with a company’s stated values and stakeholder goals
• GACA2. Collective Action: mobilizing companies to join peers, coalitions, and communities in advancing systemic change
• GACA3. Responsible Tax Practices: upholding fairness, transparency, and social contribution through ethical tax behavior

Together, these standards turn power into public trust, helping companies lead not only in their markets, but in the systems that sustain them.

GACA1: Responsible Lobbying and Policy Engagement

A company’s voice in policy is one of its most powerful tools for change. GACA1 asks businesses to use that voice responsibly, advocating in ways that uphold their stated mission and stakeholder commitments. The standard brings lobbying, political spending, and association memberships under the same expectations of transparency and accountability that govern every other part of business.

GACA1 unfolds in three layers of responsibility:

• Establish clear rules for advocacy through a published lobbying policy
• Disclose how influence is exercised: what the company spends, whom they engage, and what issues they advance
• Ensure those disclosures are consistent and transparent across all company sizes and timeframes

Large, X Large, and XX Large companies meet this disclosure requirement (GACA1.2) starting in Year 0, while Companies without workers, Micro, Small, and Medium companies meet it (GACA1.3) in Year 3. The expectations are identical across all sizes—the distinction lies in timing, not in content or sector.

GACA1.1: Publish a Responsible Lobbying Policy

Who this applies to: All Certified B Corps (from Year 0).

A responsible business doesn’t hide its advocacy. It leads with transparency, ensuring its voice and influence are used in service of the public good. A clear, public lobbying policy signals that a company’s political activity is guided by principles rather than convenience.

The policy should state that the company engages in lobbying only to advance positive social or environmental outcomes, grounded in credible data and backed by strong anti-corruption safeguards. It should also outline who is accountable for oversight, how frequently the policy is reviewed, and how stakeholders can raise concerns about lobbying practices.

Examples of compliance:

• A Responsible Policy Engagement page outlining lobbying principles, governance oversight, and approval processes
• A public statement committing never to support or fund policies that contradict climate, human-rights, or equity goals
• A board-approved policy reviewed annually and easily accessible on the company’s website

GACA1.2: Disclose Lobbying and Political Spending (Larger Companies)

Who this applies to: Large, X Large, and XX Large companies (from Year 0).

Responsible advocacy depends on visibility. GACA1.2 ensures that the largest B Corps disclose how they participate in public policy: what they stand for, whom they engage, and how their influence is used.

Each company’s public report should summarize lobbying activity, financial and in-kind political contributions, and relationships with intermediary organizations such as trade associations or coalitions. It should also clarify oversight—who reviews disclosures and how frequently—and note any gaps between the company’s stated commitments and the positions taken by groups it funds or belongs to.

Examples of compliance:

• Publishing a clear annual table of lobbying or political expenditures with recipient names and amounts
• Listing trade association memberships and reviewing them annually for alignment
• Publishing a “misalignment statement” when an association takes a position that contradicts company values, along with steps taken (e.g., internal advocacy, withdrawal, or conditional renewal)

GACA1.3: Disclose Lobbying and Political Spending (Smaller Companies)

Who this applies to: Micro, Small, and Medium companies, and Companies without workers (from Year 3).

Smaller B Corps are held to the same disclosure expectations as larger ones, but with additional time to build capacity and tracking systems. Beginning in Year 3, these companies must publicly report their lobbying and political-spending activities using the same principles of transparency and accountability outlined in GACA1.2.

Disclosures should describe whether the company engages in lobbying at all, summarize any political contributions or memberships, and identify who oversees compliance.

Examples of compliance:

• Publishing a simple statement or table showing lobbying expenditures, contributions, and memberships
• Reporting annually on any policy advocacy undertaken, its purpose, and the resources involved
• Providing governance documentation that shows board or executive review of lobbying activity

Why GACA1 Matters

Public policy shapes every major system business depends on, from labor to climate to markets themselves. GACA1 ensures companies engage with those systems responsibly: with transparency, consistency, and accountability. When lobbying aligns with purpose, advocacy becomes a force for stability and shared prosperity rather than advantage alone.

GACA2: Collective Action

Some challenges are too complex for any one company to solve. Climate change, inequity, and corruption demand coordinated effort across sectors and borders. GACA2 makes collaboration the next frontier of accountability, calling on businesses to align their influence for outcomes that last.

At its core, this standard reflects a simple truth: systems change requires systems actors. Companies shape society through the alliances they form, the initiatives they fund, and the voices they amplify. GACA2 ensures those collaborations are guided by the same social and environmental values that define B Corp certification.

This standard is unique in that it offers a menu of collective-action options. Companies select from a list of qualifying activities, each representing a recognized pathway for contributing to systemic change. The number and depth of required actions scale with company size and influence.

GACA2.1-2.2: Collective Action for Smaller Companies

Who this applies to: Companies without workers, Micro, and Small B Corps

Smaller B Corps can choose from the five recognized collective-action pathways (GACA2.1a-e) and are expected to deepen engagement over time.

Recognized pathways (GACA2.1a-e):

• Mentor others in your industry, profession, or value chain to advance their social or environmental impacts
• Contribute to external research to advance social or environmental impacts
• Collaborate with multiple stakeholders to advance social or environmental impacts
• Promote public policy to advance social or environmental outcomes
• Use thought leadership to drive systemic change towards an equitable, inclusive, and regenerative economy

Expectations by size:

• Companies without workers and Micro B Corps: at least one collective-action activity from Year 0
• Small companies: at least one activity from Year 0, expanding to two by Years 3 and 5

Examples of compliance:

• Joining a local climate, fair-work, or equity coalition and showing up regularly
• Mentoring a supplier on living-wage or inclusive-hiring practices
• Sharing anonymized data with a research initiative or NGO study
• Supporting or endorsing a public policy campaign aligned with your impact priorities
• Speaking at public forums or publishing thought leadership on social or environmental topics

Evidence to publish: A short note naming the initiative, your role, and the impact contributed (e.g., a “Coalitions & Commitments” page or section in your impact report).

GACA2.3-2.5: Collective Action for Medium to XX Large Companies

Who this applies to: Medium, Large, X Large, and XX Large B Corps

Medium and larger B Corps select from the five recognized collective-action pathways (GACA2.3a-e), demonstrating greater reach, leadership, and resourcing as size increases. These pathways mirror those for smaller companies but require deeper commitment, clearer contributions, and measurable outcomes.

The number of required pathways scales with company size:

• Medium companies: at least one action from Year 0, expanding to two by Years 3 and 5
• Large and X Large companies: at least two actions from Year 0
• XX Large companies: at least two actions from Year 0, expanding to four by Years 3 and 5

Recognized pathways (GACA2.3a-e):

• Mentor others in your industry, profession, or value chain with a systematic approach and confirmed outcomes
• Contribute to external research through financial support, in-kind contributions, or data sharing, with follow-up on outputs
• Collaborate with multiple stakeholders with clear contribution (providing resources, taking leadership roles, or integrating outputs)
• Promote public policy with clear contribution (submitting testimony, providing expertise, or leading advocacy campaigns)
• Use thought leadership with clear outcomes (multiple engagements showing measurable impact on knowledge or practice)

Examples of compliance:

• Running a structured supplier mentorship program with defined milestones and measurable impact
• Contributing at least 0.2% of revenue to relevant research and championing adoption of findings
• Taking a leadership role in cross-sector coalitions (e.g., chairing working groups, setting shared standards)
• Submitting testimony or technical comments that strengthen labor, climate, or transparency regulations
• Publishing research, speaking at forums, or enabling open-source access to knowledge with documented reach and influence

Evidence to publish: An annual collective-action summary (or a section in your impact report) listing each initiative, your role, resources provided, and outcomes achieved or in progress.

GACA2.6: Lead or Participate in High-Impact Collaborations

Who this applies to: Large, X Large, and XX Large B Corps (from Year 3 onward)

From Year 3, the largest B Corps must include at least one high-impact collaboration within their collective-action portfolio, drawn from the recognized pathways (GACA2.3a-e). This collaboration must take the form of either multi-stakeholder collaboration (GACA2.3c) or public policy advocacy (GACA2.3d)—the most resource-intensive, high-impact forms of collective action with the potential for systemic change.

Examples of compliance:

• Co-developing just-transition or workforce-resilience programs with governments, NGOs, and industry peers
• Leading or funding multi-stakeholder coalitions for climate or labor reform with clear governance roles and sustained commitment
• Hosting working groups that advance shared measurement frameworks or industry-wide decarbonization goals
• Submitting expert testimony or technical comments that shape regulation, then supporting implementation across your sector

Why GACA2 Matters

Collaboration is the proving ground of credibility. The most enduring change happens when companies act not as competitors but as co-architects of shared progress. GACA2 turns collaboration into a discipline that demands alignment, transparency, and long-term investment in collective infrastructure.

When businesses coordinate their influence, they amplify what none could achieve alone: stronger policies, fairer markets, and more resilient communities. From small B Corps lending their voices to global movements to the largest underwriting multi-stakeholder efforts, each contribution builds the connective tissue of systems change.

GACA3: Responsible Tax Practices

Taxes are among the most powerful ways businesses contribute to the common good. GACA3 ensures that companies pay their fair share, disclose their tax approach transparently, and avoid practices that undermine the communities and systems they rely on.

These requirements apply only to XX Large companies, recognizing the scale and influence of their global operations.

GACA3.1: Adopt and Publish a Responsible Tax Policy

Who this applies to: XX Large companies (from Year 0).

Taxes are a cornerstone of social infrastructure and a primary way business success contributes to public well-being. GACA3.1 calls on XX Large companies to formalize that commitment through a Responsible Tax Policy approved and published by their highest governing body.

The policy must explain how the company’s tax approach supports both its business goals and its sustainable-development commitments. It should outline:

• Governance and accountability: who reviews, approves, and enforces the policy, and how often it’s updated
• Compliance and risk management: how the company identifies and manages risks of non-compliance and evaluates performance
• Stakeholder engagement: how employees, investors, and others can raise concerns and how the company engages with tax authorities and policy advocacy
• Transparency and assurance: whether any external assurance or verification is used for public tax reporting

The policy must be publicly accessible, either as a standalone document or integrated into a broader ESG or ethics policy that clearly meets all criteria.

Examples of compliance:

• Publishing a Responsible Tax Policy linking tax practices to business strategy and the U.N. SDGs
• Identifying who approves and enforces the policy, with board-level sign-off and a defined review cycle
• Providing a channel for stakeholders to raise questions or concerns about tax practices
• Including reference to any third-party assurance of public tax disclosures

GACA3.2: Disclose Country-by-Country Tax Reporting

Who this applies to: XX Large companies (from Year 3).

Transparency is the proof of responsible intent. GACA3.2 requires XX Large companies to publicly share country-by-country tax reporting every fiscal year, detailing where and how they contribute through taxes worldwide.

Each annual report must include:

• All jurisdictions where the company is tax-resident
• For each jurisdiction: entity names, primary activities, number of employees, revenues (third-party and intra-group), profits or losses, tangible assets, and both paid and accrued corporate income taxes
• Explanations for any material differences between statutory and effective tax rates
• The fiscal year covered and when the data were last audited

Reports must be overseen by the highest governing body (or one of its committees) and published on the company’s website in an accessible location.

Examples of compliance:

• Posting an annual “Country-by-Country Tax Report” on the company website, covering all global subsidiaries
• Including narrative context that explains major year-over-year changes or use of tax incentives
• Having board oversight documented in governance meeting minutes

Why GACA3 Matters

Taxes fund the infrastructure, education, and social systems that make business possible. Responsible tax behavior is a tangible expression of stakeholder governance: proof that a company’s success is directly tied to the well-being of the societies it operates in. By paying and disclosing taxes fairly, large companies strengthen public trust and contribute directly to the Sustainable Development Goals.

Turning Power Into Public Good

Photo by Alex Radelich

The GACA Impact Topic calls companies to use their political and economic reach as instruments of repair. When influence is practiced with transparency and shared purpose, it becomes infrastructure that strengthens the policies, partnerships, and public systems that sustain both markets and society.

To explore how your company can measure and improve its performance across these areas, start with the B Impact Assessment.

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Header Photo by Elijah Mears