ABOUT PEACE, LOVE + UNDERSTANDING?
USING BUSINESS AS A FORCE FOR GOOD!
Call it corporate social responsibility (CSR), social entrepreneurialism, sustainable business, or conscious capitalism: it comes down to the simple premise that we can all make a positive change in the world
through our business.
A B Corporation is a for profit company that has received a third party certification from B Lab. A B Corporation is different from Benefit Corporations ( see below) as they are not form of a legal entity.
This B corporation certification is a stamp of approval ( similar to a Fair Trade certification) that shows your business is seriously committed to the goal of using business as a force for good. It is no simple matter to obtain B Corporation certification - the criteria to meet their standard is high and as such this certification has considerable value and meaning behind it.
Even if you have no intention of ever becoming certified, the B Lab free impact assessment is a great starting point to see where your business can do better.
We consult with business owners to facilitate the B Corporation certification process for your business.
Book a free discovery call to explore how we can work together.
A Benefit Corporation is a type of legal entity that is a "for profit" corporation created through legislation in many states in the US ( and soon to be in British Columbia). It is a hybrid type of corporation between the traditional for profit corporation and a not for profit corporation. The articles of incorporation of a Benefit Corporation explicitly requires the company to consider social and environmental objectives in addition to benefiting the shareholders of the company. This means that the directors of the Benefit Corporation are required to consider the social and environmental impact when making business decisions.
There can be an intersection between a Benefit Corporation and a B Corporation, but they are not the same thing since the B Corporation is a certification and not a legal structure.
Book a free Discovery Call to discuss if a Benefit Corporation or another structure is appropriate for your business.
Social Purpose Corporation
Washington State has not passed any Benefit Corporation legislation, instead it has created another class of corporation called a Social Purpose Corporation ( SPC).
A SPC is a hybrid type for profit corporation that falls between a traditional for profit corporation and a benefit corporation.
The SPC is a bit more flexible in what can be included or omitted from the articles of incorporation. The legislation governing SPCs permits the directors to consider social and environmental objectives but does not require them to do so.
This type of structure is authorized and governed by legislation passed in certain states in the U.S., including Washington State and Florida.
Book a free Discovery Call to discuss if a SPC, or another entity type, is appropriate for your business.
Other SEV Types:
Not for Profits and Sort of For Profits
Other types of SEVs fall under commercial ventures operated with some level of social or environmental objective that falls somewhere on the spectrum between not for profit and the for profit Benefit Corporations, These alternative forms of entities include not for profit societies, foundations, and cooperatives as well as the "sort of for profit" community contribution company.
In British Columbia, a Community Contribution Company ( C3's) is a relatively new type of entity that is similar to the UK Community Interest Company. This structure is a for profit company as it allows for some of the profits to be distributed to its shareholders ( capped at 40%) but a large percentage is required to be retained in the company. Upon dissolution, the company may only transfer its assets to a qualified entity, which is similar to a non-profit or foundation. The C3 entity does not qualify for registrable charity status and is taxed like a corporation. It is not widely used, but in some circumstances it could be the right choice.
Book a free Discovery Call to discuss if a Community Contribution Company, or another structure, is appropriate for your business.