Chapter 17: B-Corporations and sustainabilit y 2.0

For-profit business that balances purpose and profit

Certified by the nonprofit B Lab to meet rigorous standards of social and environmental performance, accountability, and transparency (B Impact Assessment)

Expected to consider the impact of decisions on all stakeholders (stakeholder governance)

• Allows companies to protect their mission and ensures that the company will continue to practice stakeholder governance even after capital raises and leadership changes.

• Because of legal precedents and cultural expectations, businesses are often expected to make decisions exclusively through the lens of profit maximization for the benefit of the owners and shareholders (shareholder primacy)

B-Corp business as a force of good

Specific legal structure available in some U.S. states and countries

Legally required to pursue a triple bottom line: profit, social impact, and environmental sustainability vs traditional corporation under standard corporate laws: no statutory obligations to pursue anything beyond shareholder interests

Required to publish annual benefit reports that measure their social and environmental performance, often using third-party standards