B Corporations and Benefit Corporations are changing the landscape of sustainable business. Here’s the latest from around the web about this important movement:
- California’s new Benefit Corporation legislation went into effect on Jan. 3, paving the way for more companies to maximize social good while turning a profit. In all, 12 companies registered as Benefit Corporations on the first day, with Patagonia leading the charge as California’s first Benefit Corporation. KQED reported on Benefit Corporations, and even mainstream business publications took notice of the new law; Bloomberg examined the possible future of sustainable business law and the Economist noted that firms with benefits are part of a larger trend, with Britain and European countries already having or also developing new legal frameworks.
- B Lab has set up a comprehensive Benefit Corporation Information Center that is a great resource for information about Benefit Corporations. It’s well worth checking out for businesses, attorneys, and directors interested in learning more about benefit corporations.
- A great article on the Stanford Social Innovation Review explains why corporate structure matters and notes that Benefit Corporations represent “an opportunity to make a paradigm shift that harnesses the incredible power of companies to benefit society and the economy.”
- The emergence of Benefit Corporations that incorporate a social or environmental mission into for-profit companies of course also blurs the traditional lines between for-profit and non-profit organizations. A short post on The Non-profit Quarterly asks, “But what does it [the Benefit Corporation structure] say about non-profits?” The American Bar Association noted that it could help non-profits deliver benefits by offering a new solution to the dilemma about whether to incorporate as a non-profit or for-profit. Nixon Peabody Law Firm provides a lengthy and detailed examination of Benefit Corporations, L3Cs, and the need to clearly understand the new legal alternatives for structuring business entities.
- B Corp Warby Parker continues to make the news, this time with a write-up in Entrepreneur magazine about how this innovative eyeglass company secured venture capital (if you missed their Fast Company video, you can view it here.)
- B Corps continue to grow in Canada. IMG just became certified in December 2011, joining Dirtt and Bullfrog Power as Founding Canadian B Corporations.
Finally, our local NBC Bay Area spotlighted Give Something Back in its segment about Benefit Corporations: