Your Business Entity Options: The B-Corp

Today’s business owners have more options than ever before. After a period of rapid growth, during which profitability was a business’s only measure of success, the societal view of corporations has started to shift. Now, more and more consumers want to work with companies that are socially responsible, environmentally friendly, and ethical in their business choices. Enter: the Certified B-Corporation.

The History of the B-Corp

The B-Corp was developed in 2007, and since then, over 1800 companies have achieved this status. The goal of B Lab, which developed the B-Corp certification, is to establish a community of businesses that are committed to public transparency, social responsibility, environmental performance, and legal accountability. This is partially in response to research indicating that today’s employees want to be connected to a greater purpose through their work.

What Defines a B-Corp

B Lab has identified five conditions that a company must meet to apply for B-Corporation Certification. These conditions include:

  • Accountability: When making decisions, directors have to consider the impact on all of their shareholders.
  • Performance: To receive certification, a company must get a satisfactory score on the B Impact Assessment test and recertify every two years.
  • Transparency: B-Corps are required to publish a public report detailing their social and environmental performance.
  • Availability: Companies of all entity types and in any country or state may seek B-Corp status.
  • Cost: Cost of certification is determined by the revenue level of the company.

Benefits of B-Corporation Status

If you are considering whether or not B-Corporation Certification is the right choice for your company, you may want to look into the benefits of certification. In this economic climate, attracting the right talent is crucial for companies striving to reach the next level. B-Corp status does not mean sacrificing profit for a greater good; it means making money without sacrificing your values. Job seekers are likely to look at a company’s values and seek employers that match their own principles.

B-Corporation Certification can also help companies reach new clients and edge out their competitors. If clients are comparing two similar options, small distinctions make a big difference. For many clients that are working toward sustainable choices and lifestyles, B-Corps may be a better choice.Wondering if you want to make your business a B-Corp? Looking for other ways to make your business stand out? Work with a business lawyer to make sure you are doing everything you can to help your company grow. Reach out to Trembly Law at 305-431-5678 to get started.

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