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B Corporations: Allowing Business to Benefit Others

A corporation has legal duties to benefit their investors and shareholders. B corporation structure gives businesses the legal freedom and protections to make decisions that benefit the environment or community.

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Written by DeletedUser

Taken from the B corp website: http://www.bcorporation.net/

Certified B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems.

B Lab, a nonprofit organization, certifies B Corporations, the same way TransFair certifies Fair Trade coffee or USGBC certifies LEED buildings.

B Corps, unlike traditional businesses:


  1. Meet comprehensive and transparent social and environmental performance standards;

  2. Meet higher legal accountability standards;

  3. Build business constituency for public policies that support sustainable business.

There are over 500 Certified B Corporations across 60 different industries. From food and apparel for you and your family to attorneys and office supplies for your business, B Corporations are a diverse community with one unifying goal: to redefine success in business.

Through a company’s public B Impact Report, anyone can access performance data about the social and environmental practices that stand behind their products.

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Photo of Meena Kadri

Indeed – great Inspiration. Was also posted earlier here: http://www.openideo.com/open/business-impact-challenge/inspiration/b-corp/ and we can understand why it's so popular! Looking forward to what this will inspire from others & conversations it might spark.

Photo of Jeff Mowatt

Meena, Here is a concrete example of business for the benefit of others. It began in 1996 with a paper reasoning the case against shareholder primacy, that it was entirely legitimate to do business for a social purpose, with the consent of the shareholders and directors. http://www.openideo.com/open/business-impact-challenge/inspiration/every-child-deserves-a-loving-family-home/

Photo of Meena Kadri

Yes, I saw that Jeff. Will be interesting to see what conversations you generate from our community there.