As the socially conscious business sector has grown in popularity, so have the questions for legal benefits and standards of the participating brands. Enter the Benefit Corporation. So why should you care? We've got you covered.
What is it?
OK, we’re just going to take a page from the B Corp book, “B Corp is to business what Fair Trade certification is to coffee or USDA Organic certification is to milk. B Corps are for-profit companies certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency.”
Protecting a Triple Bottom Line
Where most companies have to answer to their investors in regards to profit alone, benefit corporations are legally required to not only be held accountable to planet and people too. You may ask, don’t people already do that? The difference arises when companies are faced with a decision to rethink business that may be hurting the planet or people. Traditionally, investors would prioritize profit first at all costs. The benefit of B Corps is it actually keeps the company legally accountable for their goals for people and planet just much as profit and therefore remaining true to their intended purpose and identity.
Making the Cut
-Score at least 80 out of 200 points on their 150 question assessment survey. B Corp assessment questions will gauge your energy efficient, employee programs, and corporate transparency.
-Conduct a phone interview
-Corporate bylaws that include a commitment to a positive social and environmental impact
-At least 6 months of revenue
-$500 - $25,000 annually depending on size, and renewal every 2 years.
The Benefit Corp website now proudly showcases almost 1,700 brands that have walked down the aisle to their triple bottom line. Currently, 31 states now support Benefit Corporations and 7 are on their way. We have enjoyed watching this new legal standard grow over the past nearly ten years, and can’t wait to see the progress that is in store for the next decade.
Love learning about how to run responsibly? We’d love to help you manufacture your product ethically to get you started. Reach out to us to start chatting today.