A Well-Defined Mission. In order to qualify for B-Corp certification, a company must have a stated social or environmental mission with a legally binding fiduciary duty to consider the interests not only of shareholders but also of workers, the environment and the community. You have a clear social or environmental public benefit purpose. This is an extraordinarily broad – and vague – list of items that must considered when directors and officers of a California benefit corporation make decisions. For example, a non-profit can pledge to benefit one specific group of people; fund research for a particular disease; build a public dog park; or support a religious, charitable, scientific, public safety, ar… B Corporation (also B Lab or B Corp) certification of " social and environmental performance " is a private certification of for-profit companies, distinct from the legal designation as a Benefit corporation. When preparing your Certificate of Incorporation, you must create a mission statement acceptable to the IRS. Many entrepreneurs treat the decision to become a PBC and a Certified B Corp … IMPORTANT: Actionable Legal Insights for Your Business In Light of COVID-19, Streamlining M&A Transactions: The Atlassian Term Sheet. However, if your company is a C-Corporation or LLC, you are required to change a couple things, including: Corporation? A benefit corporation is a legal designation, while the certified B corp is a designation provided by a third party. In the same vein, an organization can be a social enterprise but not necessarily a B Corp or public benefit corporation, and vice versa. While all three terms are used in reference to the “business for good” space, they encompass three distinct (but overlapping) concepts. Many clients ask us about becoming a B Corp and whether it’s right for them. The B Corp is a certification conferred by a third party “B Labs” for a corporation that adheres to higher standards of serving the public good. Benefit Corp chart for more specifics.) A benefit corporation is an incorporating structure similar to LLC or a C Corp. A benefit corporation’s directors, in making decisions and discharging their duties, must take into account various factors, such as whether they are furthering a general public benefit, as well as the impact of their decision on their shareholders, employees, community, and the environment. Today, there are over 1,800 certified B Corps across the world. Being a benefit corporation or a B Corp gives you the opportunity to make a very public declaration that you care about more than profit. Both strategies put the public and potential investors on notice that the company is not purely driven … The comparison isn’t apples to apples. To become a B Corp, businesses need to complete the B Impact Assessment and ensure they meet the legal requirements. Performance: The company must achieve a minimum verified score on the B Impact Assessment; and recertification is required every two years against the evolving standard. Social Enterprise Alliance defines a social enterprise as an organization or initiative that marries the social mission of a nonprofit or government program with the market-driven approach of a business. For a typical corporation, your duties, for the most part, include creating value (aka profit) for your shareholders. Form a Public Benefit Corporation Now. A benefit corporation still has a profit-making goal, but it also has a broader public benefit purpose: to make a material positive impact on society and the environment. Benefit Corporation vs. B Corp Certification Benefit corporations are also more likely to create opportunities for their employees to volunteer for nonprofit organizations and are less likely than ordinary corporations to create or exacerbate social or environmental problems … Also, take a look at the organization and member directory to get to know what kinds of people SEA attracts. Many entrepreneurs treat the decision to become a PBC and a Certified B Corp … Benefit companies organized in other states as a benefit corporation, benefit limited liability company, social purpose corporation (Washington) or flexible purpose corporation (California) can apply for foreign authority to transact business in Oregon as either a foreign business corporation or a foreign limited liability company. If you have any additional questions, don’t hesitate to contact, http://benefitcorp.net/businesses/how-become-benefit-corporation. 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