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:

B Corporations and Benefit Corporations are changing the landscape of sustainable business. Here’s the latest from around the web about this important movement:

• The biggest story recently has been the news that NY became the 7th state to pass Benefit Corporation legislation! Even Forbes noted that NY is now a better state for business. Or, as one writer noted, Benefit Corporations are set to Occupy Wall Street.
• A good post on Greenbiz.com explains the legal requirements for Benefit Corporations in California, including the reporting requirements and shareholder votes needed to convert to a Benefit Corporation.
• Mike Hannigan of B Corp Give Something Back notes the macro-trends that are changing the face of corporate philanthropy, especially in the support systems that now exist for responsible businesses: business associations, investment capital, business professionals who support values-based businesses, and of course new legal structures such as Benefit Corporations. Taken together, it’s quite a potent force!
• As Benefit Corporation legislation continues to spread across the country, at least one state is wondering if it will miss this opportunity: Will Nevada be left behind?
• This Wall Street Journal post describes the differences among the three emerging legal structures for social entrepreneurs: L3Cs, Benefit Corporations, and Flexible-Purpose Corporations, with suggestions about which structure would be ideal for different types of companies.
• Mashable has jumped into the fray as well, asking “Do they really indicate good companies?” This is an important question, especially since the article notes that “72% of Americans believe it is important to ‘buy from green companies.’”
• B Corp Warby Parker was featured in a Fast Company video that is well worth watching. They have built giving back right into their business model: for every pair of glasses they sell, they gift a pair to someone who needs them but can’t afford them. The result in one year? 85,000 pairs of glasses to people around the world!

Finally, I’m happy to share the news that Cultivating Capital is now a certified B Corp as well! As a staunch supporter of B Corps, I am proud to be a part of a community committed to harnessing the power of business to solve social and environmental problems.

B Corporations and Benefit Corporations are changing the landscape of sustainable business. Here’s the latest from around the web about this important movement:

• Everyone’s talking about the passing of Benefit Corporation legislation in California. The Capitol Weekly, the newspaper of California government and politics, recently announced that a “new breed of company” is coming to California.
• The SF Gate also noted that “California can become a magnet for companies pursuing a triple bottom line,” especially since the Bay Area already has many socially-conscious companies.
• Sustainable Industries features a good overview about the Benefit of Benefit Corporations, explaining what they are and noting that “triple bottom line businesses are getting legit.”
• The emergence of Benefit Corporations of course has significant legal implications. This legal perspective explains the difference between Benefit Corporations and Flexible Purpose Corporations. Also, one of the attorneys who worked on Benefit Corporation legislation was recently interviewed by the Green Chamber of Commerce, and it’s well worth reading, which you can do here.
• Two movements as powerful as B Corps and Occupy Wall Street can’t help but call for comparison, such as in this post by B Lab co-founder Andrew Kassoy, an analysis on the shared goals and different tactics of the two movements, and how B Corps are an alternative to big corporations (a post that previously appeared on this blog).
• Did you know that there are B Corps in Canada? MaRS, which is “building Canada’s next generation of growth companies,” explains the B Corp Certification and a newspaper notes that a local company is one of only 20 B Corps in Canada.
• The story of B Corp iContact, an email marketing and social media marketing company, was profiled in Time magazine – and it’s an inspiring account of the humble origins of a $50 million company.

Finally, for the first time in its 94-year history, Forbes magazine identified the top 30 social entrepreneurs. Guess who made the list? B Lab founders Jay Coen Gilbert, Bart Houlahan and Andrew Kassoy, plus B Corps New Leaf Paper, Gray Ghost Ventures, Freelancers Union, and Ignia. Congrats to all!

The Occupy Wall Street movement is now in its second month, and whether you agree or disagree with it, it clearly cannot be ignored. My own feelings towards it have been somewhat ambivalent. As a member of the 99%, I share the frustrations of many who are tired of seeing our government controlled by large corporations and am deeply troubled by the effects that a growing gap between the rich and the poor has on our democracy and the opportunities that this country has always offered. However, I feel that some of the anger has been misdirected at business in general. During the General Strike in Oakland on November 2, a large banner reading “Death to Capitalism” was prominently hung up during the march. How can I, as a business professional, support a movement in which some members view business as the problem?

Not All Businesses Are Created Equal

The truth is that not all businesses are created equal. Consider the following characteristics of Big Corporations:

• Legally required to focus first and foremost on maximizing profit
• Can operate largely without regard to how their business affects society and the environment
• Drive local, independent businesses out of business
• Take money out of the local economy and send it to shareholders and executives outside of the community

By contrast, consider the following characteristics of B Corporations:

• Legally required to make decisions that are good for society, not just shareholders
• Use the power of business to address social and environmental problems
• Often local, independent businesses that operate within and give back to their local community
• Help keep money in the local economy where it continues to circulate within the community

The problem is not business in general, or even Big Corporations alone, but instead it is the way in which large corporations have prioritized profit above all else. B Corporations are part of the solution. B Lab co-founder Andrew Kassoy captured this quite well in a recent piece in Forbes: “The Occupy Wall Street movement signals a collective dissatisfaction with the status quo. B Corporations and their supporters are offering an alternative.”

Harnessing the Power of Business – for Good

One of the reasons that I went into business is because I believe deeply that we need to address the social and environmental problems that we face. Yet, when I looked at the options for effecting change, I had to acknowledge that the government can’t solve our problems (especially in its current state of impasse) and the non-profits, where I worked for years, simply don’t have the resources to solve all the problems that they’re tackling. The private sector is in the best position to effect positive social change by harnessing the power of business and diverting it away from just making money and towards making a profit while acting responsibly – and this is exactly what B Corps do.

If you are a business owner, I encourage you to consider becoming a B Corporation. The process begins with completing the online B Corp Impact Assessment. If you are not a business owner, consider shifting your purchasing dollars to B Corporations and local independent businesses that provide jobs, produce positive social impacts, and protect the environment.