Benefit Corp (B Corp)
'Benefit Corp' (B Corp) Passes State California Assembly
The Benefit Corporation (B Corp), a new type of corporate entity that purports to use business to address environmental and social problems, has passed the California State Assembly, and is heading to the Governor for his signature -- the final step to make it law. California joins other USA states, Maryland, Vermont, New Jersey, Virginia, and Hawaii, in passing Benefit Corp legislation. In the USA there are already 444 B Corporations in 54 Industries. California in particular has a vast array of corporate entities, including various types of non-profits, corporations, and limited liability companies. Traditionally, a corporation's mission is solely for profits, whose main benefactors are the shareholders. The B Corp changes all this. From the bill itself, "A benefit corporation shall have the purpose of creating a general public benefit. Alongside its purpose for general public benefit, one thing makes a California B Corp stand out from a traditional corporation: transparency. There is a legal mandate towards the general public benefit. In terms of transparency, a Benefit Corp has to include in its annual report overall social and environmental performance. This is on top of the traditional financial statements. Furthermore, a benefit corporation shall post all of its benefit reports on the public portion of its Internet Web site, if any. Almost any corporation can potentially become a B Corp, granted the corporation meets strict requirements.
For more information on B Corps, go to: http://www.bcorporation.net/