Thursday, January 17, 2019

B-Corps: Blurring the lines between business and charity

If you’ve ever started a business, you had to choose between forming as a C-Corp, S-Corp, or LLC. But a B-Corp is a certification for any type of business. B stands for Benefit, where you bake into the business’ DNA to provide benefits to ALL stakeholders, not just the shareholders. Employees, the community and the environment benefit from your operation.

My former consulting firm became an early B-Corp. Now there are close to 2700 in 60 different countries. The certification is similar to our Sustainable Business Certification in that it is certifying the organization, not a product. In some ways, it’s more rigorous that ours, requiring audits, etc. And in some ways it’s less rigorous, not going to full sustainability. But for our certified companies, this might be a good next step. To become a B-Corp, you have to write into your corporate by-laws that you’ll consider stakeholders when making decisions. This should help preserve the values if the business is sold or management changes.

Learn more about B-Corps in this recent interview with the founders.

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