This article B-Corp and Benefit Corporation Basics is intended to provide an overview of these new, popular and very exciting statuses for businesses. Here are some basics to give you the need to know you need to grow.
What is a B-Corp?
According to B-Corporation.net, “Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.” Basically a B-Corp means the organization has committed to benefiting the world in a manner of speaking through it’s day to day activities and business.
B-Corporations are businesses that commit to using business as a force for good.
B-Corp vs Benefit Corporation?
B-Corp is a certification conferred by the nonprofit B Lab. It means a company that meets a high level of social and environmental performance AND makes a legal commitment to consider all stakeholders. Any for-profit company in any country can pursue certification (LLC’s included) from solopreneurs to major enterprise.
A Benefit Corporation is a corporate entity/form (taxed like a C-corp or an S-corp) that has a higher level of transparency, accountability and purpose. It is a legal entity that has protection and permission to consider its impact on all stakeholders, not just shareholders. This is available in 31 states in the U.S., Puerto Rico, & Italy. Maryland is one of the states that offers Benefit Corporation status.
Learn more about the differences between the two by clicking here.
https://benefitcorp.net/businesses/benefit-corporations-and-certified-b-corps
What do B-Corps agree to do?
Certified B Corporations are leaders of a global movement of people using business as a force for good. They meet verified higher levels of:
- Social and environmental performance
- Transparency
- Accountability
Another way to be of benefit is to commit to greening your business. Read our article about the 5 W’s of Earth Day and 4Tips to Green Your Business by clicking here.
Who can certify?
For-Profit Companies of any size and any industry or geography. Any Legal structure (sole proprietors, LLC’s, Corporations) and companies over 1 year old. There is a special pending program for start-ups.
What are the benefits of B-Corp Certification?
- B Corp Certification helps companies:
- Maintain their mission
- Differentiate from those who don’t walk the talk
- Benchmark and improve performance
- Attract and engage like-minded talent
- Collaborate with peers
- Save Money and access services
- Generate press
- Raise capital
What are the steps of certification to become a Certified B-Corp?
- Know your business case
- Measure what matters (
- Protect your mission
- Engage your leadership & board
- Engage your team
- Meet the requirements
- Finalize and submit your application
- Documentation and review period
- Become a Certified B-Corp!
What’s the B Impact Assessment?
The B Impact Assessment (BIA) is a free, confidential platform designed to help measure and manage your company’s positive impact on your workers, community, customers and environment. … The content of the B Impact Assessment is overseen by B Lab’s independent Standards Advisory Council.
More resources:
Learn the State by State status of legislation by clicking here.
Take the B Impact Assessment by clicking here.
Hopefully you’ve enjoyed this article on B-Corp and Benefit Corporation Basics. One way to get on the road to being a B-Corp or Benefit Corporation is to green your business. Read our article on Earth Day which includes tips to green your business by clicking here.