It was originally derived from “benefit corporation”, a type of US corporate structure, but B Corp means many things to many people. The new California B Corporation law allows entrepreneurs and investors to organize stock corporations that can pursue both economic and social objectives. 1. Another way to show that a business is focused on environmental and social goals is to apply for B corp. certification through the nonprofit organization B Lab. The benefit corporation structure is useful on its own, whether or not a company decides to pursue certification, but here is how the benefit corporation structure relates to B Corp Certification: The best way for corporations to meet the legal requirement for B Corp Certification is to use the benefit corporation legal structure. ). Unlike the traditional corporation that gives priority only to financial profitability, B Corps actually look at the triple bottom line and use the power of business to address social and environmental problems. B Corps can only be for-profit organizations, and they must meet B Labs’ standards for social and environmental performance, accountability and transparency. A certified B Corp , is a relatively new form of corporate organization. Conversely, the B Corp is a certification, conferred upon a company that meets certain social and environmental sustainability standards. It is a for-profit business that has a stated “public interest” purpose set out in its certificate of incorporation to allow for a purpose beyond maximizing profit for stockholders. What is a B Corp? A B Corp, on the other hand, is an organization that has successfully completed the certification put forth by the nonprofit B Labs. A Public Benefit Corporation (“PBC”) in Delaware, which some refer to as a B-corporation, is a new type of corporate structure. B Corp. Certification: Another Way to Become a Benefit Company. The B in B Corp is open to interpretation. It can be costly The fees for B Corp certification range from $500 to over a million, depending on how much your company makes. In 2006, Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, founded B Lab, a nonprofit organization that certifies as B Corporations businesses adhering to true corporate social responsibility. Some B Corps may also be allowed to charge annual fees, collect fundraising, and other non-profit activities that are inviting to investors. The B-Corporation is an actual legal entity recognized by the Secretary of State and formed upon the filing of required paperwork, like the Articles of Incorporation. We spoke to Kate Sandle, Community Manager for B Corp UK, whose favourite interpretation of B Corp comes from Ghandi – “Be the change you wish to see in the world”. There are numerous member resources that are available to a B Corp once they are allowed to form. Disadvantages of B Corp certification. There is a fellowship of B Corporations that shares resources. For a quick overview of B Corps, check out the B Corp anthem below (less than 2 min. 4. But some certified B Corp companies find that B Corp certification is a clear, cost-effective way to objectively measure their impact. The New Year brought a new class of corporation called a benefit corporation or B Corp, to the state of California. Learn about our values and how we are progressing towards our 2020 goals. To B Corps, sustainable business isn't charity, it's better business. Athleta is a Certified B Corp. We use business as a force for good. 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