Could B Corps be the future of business development?
Despite the ease with which “big business” flows off the tongue, many corporations pride themselves on performing charitable works. Whether it is through sponsorships or give-back programs. But a new breed of business is emerging that is taking social good a step further. Benefit corporations – or so-called B corps – are seizing on state laws which allow them to place social good above the bottom line.
According to the Economist, B corps are required to “have an explicit social or environmental mission, and a legally binding fiduciary responsibility to take into account the interests of workers, the community and the environment as well as its shareholders.”
Six states have laws which allow B corps, and “Britain, for example, has since 2005 allowed people to form ‘community interest companies.’ Similar laws are brewing in several European countries,” adds the Economist.