The Next Big Thing: B Corp Changes the Game

Democrat or republican?

Black or white?

For-profit or nonprofit

Ugh. What a bore! Can you imagine only having these choices — who wants to live in a world like that? Such were the limited choices of the business world. As CSR seeps into the colloquial language of middle America, insiders look for new ways to push the sustainability envelope further. A select few are thinking way outside box, questioning the laws, and then making their own.

Revolutionary? Yes. Meet B Corporation, which stands for Benefit Corporation — and it's exactly what it sounds like — a company that benefits society. In their own words "B Corporations are a new type of corporation which uses the power of business to solve social and environmental problems." B Corp created a certification process that is no walk in the park. To become a "certified B," companies can't just talk the talk, they must pass rigorous standards evaluation, and essentially re-write their own mission to reflect the ethos of the B Corp community. There are now 300 certified Benefit Corporations, and more working towards that status everyday.

"Unlike traditional corporations, Benefit Corporations must by law create a material positive impact on society; consider how decisions affect employees, community and the environment; and publicly report their social and environmental performance using established third-party standards."

At the core B Corps are significantly different from the business structure of for-profits and nonprofits. A Benefit Corporation is essentially a hybrid of both: a company with the intention (and now, in Maryland) the legal right to do good. Announced last week, Maryland is the first state in the Union to pass legislation recognizing Benefit Corporations.

On the ground how will the recent legislation change the way business is done in Maryland? Jay Cohen Gilbert, the co-founder of B Corp, tells us what positive changes to expect for Marylanders "For the first time, entrepreneurs and investors who want to make money and make a difference have the legal protection to do so. Maryland will benefit by attracting these kinds of business leaders who create higher quality jobs, strengthen Maryland communities, protect Maryland's environment and serve Maryland's underserved."

In The Pipeline

Are you thinking about packing your bags and checking out real estate in the progressive state of Maryland? You might not have to. If B Corp has its druthers, this legislation will soon be coming to a state near you. "We are hopeful that Benefit Corp legislation will pass in Vermont within the next 30 days.  We are working with supporters in several other states for 2011, including PA, NC, NY, OR, and WA."

In a society freshly scorned by the irresponsibility of big business, this is a welcomed move. Not only has B Corp initialized a certification system where there was none, they have also essentially created a system that makes it legally imperative to make a positive impact on society.

The founders of B Corp dream big, they always have. Company by company, state by state, they are building a new sector of the economy. The dawn of a new way of doing business is here. Good morning to ya!

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Image courtesy B Corp.