Since 2007, the ability to become a Certified B Corporation (“B Corp”) has given companies a way to set themselves apart as being mission-oriented and focused on priorities beyond shareholder returns. As of October 2024, this global movement encompasses nearly 9,500 companies in more than 100 countries, spans 160 industries and includes many household brand names such as Athleta, allbirds, Ben & Jerry’s, Danone North America, Eileen Fisher, New Belgium Brewing Co., and Patagonia. Could B Corp certification be the right choice for your business?
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Public Benefit Corporations Explained
Should you consider forming your business as a benefit corporation or perhaps investing in one? Benefit corporations, also called public benefit corporations in some states, are a relatively new form of corporate entity that has grown in popularity in recent years. First recognized in 2010 in Maryland, this form of entity is now available in the overwhelming majority of U.S. jurisdictions. The benefit corporation form of entity takes aim at a key feature of traditional corporate law that can create tension with a mission-oriented or impact-driven business: namely, that directors and officers of corporations may have a legal duty to prioritize the maximization of financial return to shareholders above all else. Failure to do so exposes traditional corporations and their managers to the risk of lawsuits by shareholders for breach of that fiduciary duty.
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