B Corporation

B Corporations envision a new sector of the economy which harnesses the power of private enterprise to create public benefit, comprised of a new type of corporation—the B Corporation—which is purpose-driven and creates benefit for all stakeholders, not just shareholders.

Members of this emerging sector and as entrepreneurs and investors in B Corporations, hold these truths to be self-evident:

That we must be the change we seek in the world.
That all business ought to be conducted as if people and place mattered.
That, through their products, practices, and profits, businesses should aspire to do no harm and benefit all.
To do so requires that acting with the understanding that we are each dependent upon another and thus responsible for each other and future generations

Doing well, while doing good

For the last 35 years, social entrepreneurs have created thousands of profitable businesses across diverse industries demonstrating that companies can 'do well' while 'doing good'. For-profit social entrepreneurship, social investing, and the responsible business movement have reached critical mass and are now at an inflection point. Accelerating consumer and investor demand has created momentum that, if channeled properly, will result in the formation of a new sector of the economy which harnesses the power of private enterprise to create public benefit.

The current marketplace, however, is confusing and fragmented. Increasingly, everyone claims to be green, responsible, or sustainable, making it difficult to distinguish between good companies and good marketing. In addition, there are too many issue-specific certifications and broad associations with no standards of social and environmental performance. With no clarity for consumers and investors, markets will languish.

There is also a root problem of system design and corporate culture. Fiduciary duty rules are best understood as open-ended standards of behavior that exhort corporate officers, directors, and controlling shareholders to focus on the firm's interests rather than their own. We need an organizing platform to accelerate the development of purpose-driven capital and consumer markets.

B Corporations

Intend to

make it easier for consumers and investors to support good companies; and
create a legal framework for a new type of corporation which creates benefit for all stakeholders, not just shareholders.

B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems. B Corporations are unlike traditional responsible businesses because they:

Meet comprehensive and transparent social and environmental performance standards.
Institutionalize stakeholder interests.
Build collective voice though the power of a unifying brand.

The Benefits of becoming a B Corporation include differentiating your business from the growing barrage of green/cause marketing campaigns, and thus standing out as a leader in the market, creating a clear path for others to follow. You also embed your values into your corporate governing documents so they can survive new investors, new management and even new ownership.

As the B Corporation community grows, your company will benefit from billions of dollars of collective market presence created by thousands of B Corporations speaking with one powerful voice. Millions of dollars are spent each year promoting B Corporations through B Lab, a non-profit organization.

WorkSavvy LLC has the honor to have been one of the 82 founding members of BCorporation. If you join the B Corporation community, you gain access to:

resources and information to improve your company's social and environmental performance.
a community of fellow entrepreneurs who share best practices; consumers looking to support "good companies"; and investors aligned with your company's mission.

There are about 200 B Corps so far with combined sales of more than $1 billion. Some of the better known BCorps are Seventh Generation, King Arthur Flour, Shore Bank.

Tax Advantages

Philadelphia has become the first city in the nation to provide a pilot tax incentive for certified sustainable businesses, and more cities may follow.

Certified B Corporations qualify for a $4,000 tax break after the Philadelphia City Council voted to provide the incentive as a means to reward companies engaging in sustainable business practices. Under the pilot, only 25 companies will be able to receive the tax credit, although the city may expand the program in the future.

Assess Your Company

Take the B Survey and see how you stack up against the new standard for social and environmental performance in the areas of environment, employees, consumers, community and leadership. Then learn how to become a B Corporation. Take the survey!

Watch the videos!

This first video is Jeffrey Hollander of Seventh Generation explaining why his company has become a B Corporation:

And here is a general video about BCorps including mini interviews with several members giving their views:

Gov Schwarzenegger urges New Company for New Economy

Responding to requests from the California Governor and State Bar, a Legal Working Group has begun drafting model legislation for the 2009 session to create new corporate entity accountable to stakeholders. The efforts of all B Corporations has led to this initiative.