Benefit Corporation

(redirected from Benefit Corporations)

Benefit Corporation

A corporation in which the members of board of directors have the statutory duty to provide some tangible benefit to the community and/or the environment. In other words, a benefit corporation is not prohibited from earning and distributing profits, but is expected to do these other things as well. A benefit corporation is informally called a b-corp.
References in periodicals archive ?
Investors like KKR, Andreessen Horowitz, First Round Capital and Union Square Ventures have all invested in benefit corporations, and major international companies including Unilever, Danone and Campbell Soup have acquired benefit corporations and maintained the status when integrating those businesses into their other operations.
Find an attorney well-versed in social enterprise, benefit corporations, and B Corps, and form partnerships with like-minded vendors and social entrepreneurs.
Cooley is releasing a new incorporation package for Delaware public benefit corporations on Cooley GO.
However, two years later, the status of benefit corporations, or B Corps, in New Hampshire doesn't quite meet expectations.
In 2016, Alaska's House of Representatives considered whether to pass a bill that would have allowed businesses to incorporate as benefit corporations (commonly referred to as "B Corps") under state law.
Benefit corporations and B corporations have been around for several years, but their existence and purpose are still relatively unknown among business people, investors, and CPAs.
Unlike B Corps, benefit corporations are not certified; rather, they are voluntarily formed with the purpose of creating a public benefit, which is deemed achieved if the corporation's business operations create a material positive impact on society and the environment as assessed against a third-party standard--such as the B Impact Assessment, Good Guide Company Ratings, and ISO 26000.
This report would not be required to be audited, but some benefit corporations may decide to have third-party audits conducted to enhance their credibility.
There are currently 2,902 Benefit Corporations in the United States and 1,462 Certified B Corps in the world.
59) Benefit corporations are also required to prepare an annual benefit report that assesses the company's performance in creating general public benefit against a third-party standard.
Delaware--arguably the most influential state in the nation when it comes to corporate law--joined the bandwagon last September when it passed legislation to create what it calls "public benefit corporations.
The legislation that designates benefit corporations lets founders set customized objectives for their companies, such as those related to environmental causes, social improvement, community development and employee advancement.