How to Verify a Social Enterprise Is Genuinely Certified
To verify a social enterprise is genuinely certified, ask for the certifying body and the certification reference, then check it against that certifier's own directory rather than the supplier's website. Confirm the status is current, not historical. Save a dated screenshot or PDF of the register entry with the supplier's ABN. Anything else is a marketing claim.
By Zoe Atterbury, Founder and CEO of Bloom Cycle. I have been through Social Traders certification and People & Planet First verification from the applicant's side, so I know what the evidence actually looks like.
Why "social enterprise" is not a protected term in Australia
Nothing stops a business calling itself a social enterprise. There is no register you have to join and no test you have to pass. An estimated 12,033 social enterprises operate in Australia (Social Enterprise Australia, Business for Good, 2022), while over 750 are Social Traders certified as at July 2026 (Social Traders).
That gap is not evidence of bad faith. Plenty of genuine social enterprises have never applied. But it means the word alone tells you nothing, and if you are recording spend against a social procurement target you need the certified subset. Social Traders describes certification as work that "de-risks government investment in social enterprise by ensuring they are genuine". I found the process demanding, and that is the point.
How do I verify Social Traders certification?
Four steps.
- Ask for the certification and the reference. A certified supplier can give you this in a line of email.
- Check the Social Enterprise Finder. This is the directory certified enterprises are listed on. Government and business buyers can also register for the Social Traders portal, which adds filtering and spend reporting.
- Confirm the status is current. Recertification is annual for enterprises trading under two years and every three years after that (Social Traders Guidance Notes and Standards). Certification can also be suspended or terminated, at which point the enterprise "must immediately cease to represent yourself as a certified social enterprise" (certified social enterprise terms and conditions).
- Match the ABN. Trading names change. The ABN is what ties the certification to the entity on your invoice.
Behind the badge, certification tests a defined primary social, cultural or environmental purpose, trading income of approximately 50% or more for enterprises five years or older, and a benefit distribution test requiring direct social costs of at least 50% of prior-year net profit after tax. Assessment includes an ABN and ACN check, financial documents and a solvency assessment. How Social Traders certification works has the full detail.
How do I verify People & Planet First verification?
Search the People & Planet First Verified Directory. Verified enterprises are assessed against five published standards — purpose, operations, revenue model, use of surplus and legal structure — and applicants "need at least one point for each of the five standards to be eligible" (People & Planet First). They receive a badge and a certificate, and an annual renewal is required, so check the date rather than the badge.
What about B Corp and charity status?
Both are useful adjacent checks. Neither means social enterprise.
B Corp certifies overall company performance, independently audited against ISO 17021-1 requirements. B Lab published its biggest standards update in April 2025, and companies applying from 2026 certify against V2.1, organised around seven impact topics on a phased five-year cycle (B Lab). Do not quote the old 80-point threshold at a company certifying on the new standards. Check the Find a B Corp directory for current status.
Charity registration is a tax and regulatory status, not a business model. The free, public ACNC Charity Register shows registration status, whether reporting is up to date, the charity subtype with start and end dates, financial reports, responsible persons, and a history showing whether registration has been revoked. A charity can trade. A social enterprise does not have to be a charity.
Verification checklist
| Claim | Who certifies or verifies it | Where to check | What a valid result looks like |
|---|---|---|---|
| "Certified social enterprise" | Social Traders | Social Enterprise Finder; Social Traders portal | Current listing matching the supplier's legal name and ABN, not suspended or terminated |
| "People & Planet First verified" | People & Planet First, via its verification partner network | verified.peopleandplanetfirst.org/directory | Listing present with verification inside the annual renewal window, plus badge and certificate |
| "Certified B Corporation" | B Lab, third-party audited to ISO 17021-1 | Find a B Corp directory | Current certification shown, with the standards version and certification date |
| "Registered charity" | ACNC | ACNC Charity Register (free, public) | Status "Registered", reporting up to date, no revocation in the status history |
| "Aboriginal or Torres Strait Islander business" | Supply Nation; Kinaway in Victoria | supplynation.org.au; Kinaway Business Directory | Current registration or certification, 50% or more Indigenous ownership (51% in the NT) |
| "Australian Disability Enterprise" | Department of Social Services funding agreement; BuyAbility network via National Disability Services | buyability.org.au/directory | Listing present; NDS membership with a current or former DSS Disability Employment Assistance Funding Agreement |
| "Australian made" | Australian Made Campaign Ltd | australianmade.com.au licensee search | Current licence to use the Australian Made logo |
What are the red flags?
- No certifying body named. "We're a social enterprise" with nothing after it. Ask which body, and watch what comes back.
- A logo but no reference. An image is not a register entry.
- An old certificate. A PDF dated three years ago proves what was true three years ago.
- Impact described only in adjectives. Purpose-driven, ethical, giving back, conscious. Real certification produces numbers: hours, people, tonnes, percentages.
- No trading-income evidence. A social enterprise earns its income from trade. If revenue is grants and donations with a shop attached, that is a charity, and should be described as one.
- "Social enterprise" used as a product adjective. It is what the business is, not a feature of one product line.
- Reluctance to put it in writing. The fastest test I know. A certified supplier sends the certifier, the reference and the ABN in one reply.
What should I keep on file for an audit?
Six things, saved at the time of purchase rather than reconstructed later: the supplier's legal name and ABN; the certifier and certification reference; a dated screenshot or PDF of the register entry; the certificate or badge evidence; current insurance certificates; and the invoice value excluding GST with the pathway recorded against it.
That file is the whole job. Social procurement in Australia and how to buy from a social enterprise sit on top of it.
Frequently asked questions
Is "social enterprise" a protected term in Australia?
No. Any business can describe itself as a social enterprise, and there is no legal definition or mandatory register. That is why buyers rely on independent certification. Social Traders certification and People & Planet First verification both test purpose, trading income and use of surplus against published standards, and both publish a directory a buyer can check.
How do I check if a business is Social Traders certified?
Ask for the certification reference, then check the Social Enterprise Finder for a current listing matching the supplier's legal name and ABN. Confirm the status is current rather than historical, because certification is recertified annually under two years of trading and every three years after that, and can be suspended or terminated.
What is the difference between a social enterprise and a charity?
A charity is a regulatory and tax status registered with the ACNC. A social enterprise is a business model: it trades for revenue, has a defined social, cultural or environmental purpose, and reinvests the majority of surplus into that purpose. An organisation can be both, one, or neither. Check the ACNC Charity Register for charity status and a social enterprise certifier for the business model.
Does B Corp certification mean a company is a social enterprise?
No. B Corp certifies overall company performance across environmental and social impact areas, and many B Corps are conventional businesses. Social enterprise certification tests something narrower and more specific: primary purpose, the share of income from trading, and how surplus is used. A company can hold both, and the two are checked in different directories.