An update of a popular blog post from April 18, 2018

If your shop is incorporated, you are most likely an S Corp or C Corp.  You may not have even heard of the option of being a B (for benefit) Corp, which is not surprising — because this relatively new type of corporate status mostly reflects an ethical rather than legal position. “B Corps are for-profit entities structured to make a positive impact on society,” according to A Guide to Purpose-Driven Legal Business Entities Types on the website of Consciously.   

The B Corp movement began in Maryland in 2010, and today includes well-known retail chains such as Etsy, Warby Parker, Athleta and Patagonia as well as smaller shops, manufacturers, service businesses and even financial institutions.  Companies agree to meet rigorous standards of social and environmental performance, accountability, and transparency when seeking this designation. The short video We Have a Dream does a good job explaining the ways in which B Corps work.

B Lab is a nonprofit founded in 2006 to serve this movement of people using business as a force for good. It provides B Corp certification to companies that meet the standards mentioned above There are currently over 10,000+ Certified B Corporations in more than 100 countries and over 160 industries, according the the B Lab website.  Not all of the certified B Corps companies have the legal status of being a benefit corporation, however, because this legal entity is not currently available in all states.

March is celebrated as B Corp Month. According to B Lab, every year the B Corp community joins together “to celebrate what it means to be a B Corp, build awareness of the movement and educate diverse audiences on the importance of transforming our economic system for the better.  This effort promotes one key, unified message through a global campaign; through talking about what it means to be a B Corp, we build meaning, understanding, and trust around the B Corp Certification, highlighting companies that are environmentally and socially responsible, and the people using business as a force for good.”

Why would a company want to seek B Corp status? According to an article in The Washington Post, “Some companies that go through the certification see it as a marketing tool that helps promote their do-gooder business approach in a credible way to customers, potential employees or socially minded investors. Others see it as an organizing principle that helps hold them accountable to their corporate ideals when making decisions.”  

The principles behind B Corp certification can serve as inspiration to any independent retailer, even those who don’t seek this special status.  Because hopefully we all agree that being a good corporate citizen benefits our communities, our environment – and our businesses.

Happy Retailing,

Carol “Orange” Schroeder