B Corporations

Small Business California was a strong supporter of the legislation creating Benefit (B) Corporations. Please see outline below about them. For those of you in the SF area, we are thinking of doing a seminar to provide small businesses the possible benefits of becoming a B Corporation. Is there any interest in doing so and would you attend?

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About B Corporations

Certified B Corporations are a new type of company which use the power of business to solve social and environmental problems. These companies have passed a comprehensive assessment measuring their impact on society, the environment and their employees. B Corporations embed stakeholder considerations into the DNA of their company, adjusting their governing documents to consider people, planet, and profit.

1. Community Building: B Corporations

B Impact Assessment: (http://b-lab.force.com/GIIRS/BCorpRegistration) It’s free and open to all, use it as a benchmarking tool and track your company’s social and environmental impact, or as a framework for building the sustainable business you want to run. Our road map for new businesses will help guide new companies looking to certify as B Corporations. (http://www.bcorporation.net/newbusiness)

B Resources:

Making good easy is hard work. Our open source B Resource Guides (http://www.bcorporation.net/services/resources) were created through the Colombia

Business School’s Research Initiative and Social Entrepreneurship RISE program (http://www.riseproject.org/)Use the B Resources Guide to access advice on anything ranging from writing an Employee Handbook to a Local Purchasing Policy

B Corporation Directory: With over 500 Certified B Corporations, the B Corporation Directory is a powerful source for collaborative advantage and mindful sourcing. Use the directory to find good companies with quality products & services across industry, geography, impact area, and more. (http://www.bcorporation.net/community/search)

2. Driving Capital to Impact: GIIRS

GIIRS simplifies driving capital to impact investment opportunities providing a comprehensive standard that measures social and environmental performance and enables comparability between investment opportunities. GIIRS rated companies are given exposure, can highlight what they are seeking (GIIRS Directory), and provided with access to various socially minded exchange platforms. (http://giirs.org/)
By certifying as a B Corporation, companies receive a free GIIRS rating.

3. A New Corporate Form: The Benefit Corporation

Bill AB361, the Benefit Corporation bill passed in California October 10, 2011, becoming the 7th US state to recognize Benefit Corporations as a legitimate corporate form. The bill takes effect January 1st, 2012.

Benefit Corporations are similar to existing California corporations, with the exception that they: 1) have a corporate purpose to create a material positive impact on society and the environment; 2) are accountable to redefine fiduciary duty to require consideration of the interests of employees, community and the environment when making decision; and 3) are transparent by publicly reporting annually on its overall social and environmental performance using a comprehensive, credible, independent, and transparent third party standard.

Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA 94116
shauge@cal-insure.com
415-680-2188