At the recent launch of B Lab UK, B Lab established a Multinationals and Public Markets Advisory Council (MPMAC) to address a number of systemic, institutional and practical barriers that have made it hard for multinational private and publicly listed companies to earn B Corp Certification and to adopt benefit corporation status. The B Corp legal regime no more guarantees that those companies will make “socially responsible” decisions than existing law prevents directors from doing so. B Lab certifies companies based on how they create value for non-shareholding stakeholders, such as their employees, the local community, and the environment. A benefit corporation is a new type of legal entity that is designed to produce a public benefit, in addition to driving shareholder value. Academic contributions of loan forgiveness. Certified B Corporations are legally required to consider the impact of their decisions on all their stakeholders. It was originally derived from “benefit corporation”, a type of US corporate structure, but B Corp means many things to many people. A C corporation may change to a B corporation merely by stating in its approved corporate bylaws that it is a benefit corporation; however in certain jurisdictions (especially Delaware), the terms "public benefit corporation" or "PBC" are also required to be in the legal name of B corporations. See Boatright (2006) and Johnstone and Lionais (2004). The B in B Corp is open to interpretation. For companies with more than 10 employees, there is a grace period for completing the legal requirement (see timelines based on pathways below): Adopt benefit corporation structure or equivalent within 2 years of certifying, Amend governing documents to include specific mission aligned language with 90 days or 1 year depending on region. A C corporation may change to a B corporation merely by stating in its approved corporate bylaws that it is a benefit corporation; however in certain jurisdictions (especially Delaware), the terms "public benefit corporation" or "PBC" are also required to be in the legal name of B corporations. Once a firm crosses a certain performance threshold on these dimensions, it makes amendments to its corporate charter to incorporate the inte… The company’s legal requirement, and the timeline for the process, will be determined by your company structure, and your country and state/province of formation. For corporations in some states, notably Delaware, using the benefit corp structure is the only way to meet the legal requirement for B Corp Certification. For a summary of the Terms of Agreement, please see here. B Lab also assists Sistema B in incorporating a benefit corporation distinction into local legal systems. Benefit corporations are often referred to as “b corps,” but it is important to make a distinction between a “b corp” and a Certified B Corp. A “b corp” is created under state law—in much the same was as any corporation. [16] As of May 2014, 28 of 30 members were listed by their business affiliation. Certified B Corps are a new kind of business that balances purpose and profit. B Corporation (also B Lab or B Corp) certification of "social and environmental performance" is a private certification of for-profit companies, distinct from the legal designation as a Benefit corporation. These requirements are: an in-depth review of public record of the companies, employees, products and other relative topics and randomised site visits. Learn more about … There are over 1,800 Certified B Corps in over 50 countries across 130 different industries. B Corporations (“B Corps”) are businesses that “meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose”. This same information will determine which B Corp Agreement your company would sign to complete certification. A benefit corporation is a legal tool to create a solid foundation for long term mission alignment and value creation. B Lab certification is not needed to obtain benefit corporation status. Certified B Corporations are social enterprises verified by B Lab, a nonprofit organization. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. There is a 30-day public consultation period before releasing a new version of the B Corporation assessment. This includes meeting a certain score on the B Impact Assessment, which measures a company’s impact on its workers, community, and environment. Certified B Corporations are businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. Benefit corporations, on the other hand, are businesses that are organized for profit, with a corporate purpose of creating general public benefit, in addition to any other purposes they have as a business corporation. The B Corp legal framework helps companies protect mission through capital raises and leadership changes and gives entrepreneurs and directors more flexibility when evaluating potential sale and liquidity options. B Corps make this legal change by updating their Articles of Association, reincorporating as benefit companies and benefit corporations, or making other structural changes. However, the certification brings a multitude of branding tools to the corporation. The legal requirement can be fulfilled through a variety of structures, from LLCs and traditional corporations to benefit corporations and cooperatives. The B Corporation or “B Corp” is a certification issued by the organization B Lab Company to sustainable for-profit businesses that meet rigorous standards of social and environmental … B Legal, Inc. is a California Domestic Corporation filed on October 27, 2005. 2. [16] Depending on a company's industry, geographic location, and number of employees, the online assessment adjusts the weightings of the question categories to increase its relevancy. [4] To add on, many C corporations usually adapt the B Corporation Certificate to gain goodwill.[5]. Allowing for the company's values to exist under new management, investors, or ownership. Although any company, regardless of its size, legal structure, or industry, can become a B Corporation, currently most B Corporations are privately-held small and medium-sized businesses. A Certified B Corp is a company that has been certified by the non-profit organization B Lab. This page was last edited on 3 February 2021, at 13:56. Any business in the US, regardless of its legal structure, can be "certified" as a B Corp by B Lab, by meeting standards of transparency, accountability and performance. If your corporate structure and region of incorporation does not have a designated legal framework, there is no additional legal requirement to attain certification, but the company will support B Lab’s public policy objectives of passing benefit corporation legislation in its state, province, or country of incorporation.
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