Waiting on my $5, ballerina-portioned, “Bread and Roses” flavored cup of ice cream at Blue Marble recently, I noticed a “Certified B Corp” print out posted on the wall. “That’s nice,” I thought, as I wandered off with my rather bougie snack. It wasn’t until I was lying in bed hours later that it occurred to me that I don’t really know what it actually means to be a B Corp.
“B Corp” came into my colloquial vocabulary around 2012 when I received my first Uncommon Goods catalog (perks of moving to the “right” Brooklyn neighborhood). At the time, I was reading Blake Mycoskie’s Start Something That Matters, so naturally, I was smitten and all of the Christmas gifts that year were ordered from my local Brooklyn B Corp.
These days the terms B Corp, benefit corporation, and social enterprise get tossed around like hot potatoes, often – and incorrectly – interchangeably. Since I’m as guilty as the next guy, I decided to do some research and get to the bottom of “business for good.”
B Corp
A B Corp is a company that has been certified by B Lab, a nonprofit that, “serves a global movement of people using business as a force for good.” It is an international, private certification and any for-profit company can apply. To receive the B Corp certification, companies must meet a certain score on B Lab’s B Impact Assessment and pay an annual certification fee.
Benefit Corporation
Benefit corporations are a type of legal for-profit corporate entity in the US that differ from C-corps in, ” purpose, accountability, and transparency, but not in taxation.” (Thanks Wikipedia!) A smart friend of mine explained the difference thus, “In a traditional C-corp, the board is obligated to make decisions that are in the best (primarily financial) interest of the shareholders. In a benefit corporation, the board is obligated to make decisions that have a positive impact on society and the environment and then the financial interests of the shareholders, so that public benefit is weighed along with economic gain.” Specifics around the benefit corporation entity vary from state to state.
Social Enterprise
Social enterprise is the murkiest of all the types (in my humble opinion) and is generally accepted to refer to any entity that strives to solve a social or environmental problem with a market-driven approach. This could be a nonprofit organization with a profitable solution/program, a for-profit business designed to address a social/environmental issue, and everything in between. It is maddeningly (and painfully, realistically) undefined.
At the end of the day, I’m fairly happy to give my business (or donation dollars) to all three types. I’d like to believe that ALL businesses want to have a positive social and environmental effect, but until that day comes, I’ll resoundingly support those that opt-in to making the world a better place.