What do more than 2,000 companies around the world, across various industries and countries, have in common? They’re in business to benefit others and aligning their business practices with the greater good. While you may think that profit is king, consider these stats:
Doing good matters to current and future generations of employees and citizens. Fortunately, the rising momentum of B Corps and benefit corporations can positively impact the world achieve sustainable growth.
Some people mistakenly use the terms B Corp and benefit corporation interchangeably. While it’s wonderful that companies are interested in aligning their business practices with the greater good, it’s important to get the terminology right.
As a B Corp, companies commit to using their profits to positively impact their employees, communities and environment. It’s a way to confirm to employees and other stakeholders that the company’s mission is embedded in everything it does.
Any company in the world can be considered a B Corp if it has achieved the B Corp Certification, which measures a company’s social and environmental performance. For certification, these companies must meet the minimum B Impact assessment score of 80.
EcoInnovate, a Philly-based company which helps companies become more eco-friendly, has been B Corp certified since 2015. It currently has a B Impact assessment score of 108.8.
A benefit corporation is a legal structure that a company can choose when incorporating. Similar to B Corps, benefit corporations aim to help solve society’s challenges through their missions and business practices.
The first benefit corporation law was passed in 2010 and so far, the structure is only available in limited U.S. states. To measure its progress on its stated goals, benefit corporations must release a public benefit report every year using a third-party standard.
Local benefit corporations include Roofmeadow, the Green Program and us, Green Philly.
Under both designations, companies commit to higher standards of transparency and accountability in their pursuit of helping the world. However, there are some key differences.
Which is Best for Your Company?
Deciding to pursue a B Corps certification or file as a benefit corporation, or both, requires careful consideration of your mission, goals, resources and business practices. No matter what decision you make, know you’ll be in great company as you work to make the world a better place.
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