Benefit Corporations (B Corps) | DeWitt LLC Law Firm
Our attorneys are committed to serving the needs of benefit corporations and B Corporations from formation and certification, to transition planning, and everything in between. Benefit corporations and B Corporations appeal to companies looking to distinguish themselves as businesses with a social conscience, balancing profit, and purpose. Growing evidence supports that what is good for society is also good for business. Some brands have joined the movement taking note that Millennials, the largest retail demographic, prefer to take their business to values-driven companies. Nielsen reports that the top five reasons consumers are willing to pay more for a product include: brand trust, a health and wellness focuses, fresh, natural, organic ingredients, a brand known to be environmentally friendly, and brands that are known for social value.
A benefit corporation is a for-profit corporate entity with goals that include positive impact on society, the community, and the environment in addition to traditional corporate profit motives. Benefit corporations are governed by state laws requiring transparency and accountability of the company’s social, environmental, and financial performance to shareholders. States have rapidly adopted legislation recognizing benefit corporations with approximately 40 states having adopted legislation in one form or another. Minnesota adopted legislation in 2014, and Wisconsin followed suit in 2017.
Not to be confused with a benefit corporation, a B Corporation is any for-profit company, including a benefit corporation, that has obtained private certification by B Lab, a global nonprofit organization dedicated to the movement of business dedicated to social good. To obtain certification, companies are assessed based on their social and environmental performance as well as the compliance of their company governing documents. Today, there are nearly 4,000 certified B Corporations that meet the highest of standards in areas including social and environmental performance, public transparency, and legal accountability.
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If you would like more information on becoming a benefit corporation, obtaining B Corporation certification, or both, please contact email@example.com.