Benefit Corpoeration vs B-Corp Certification
A Benefit Corporation (B-Corp) is a type of legal structure for a business that is committed to creating a positive impact on society and the environment, in addition to generating profits. Benefit Corporations are legally required to consider the interests of various stakeholders, not just shareholders, when making decisions. They have a legal obligation to balance profit generation with their social and environmental mission.
On the other hand, a B-Corp Certification is a voluntary certification provided by a nonprofit organization called B Lab. It assesses and certifies businesses based on their social and environmental performance. To become a Certified B-Corp, a company needs to meet specific criteria related to social and environmental impact, transparency, and accountability.
In summary, a Benefit Corporation is a legal business structure, while a B-Corp Certification is a recognition of a company’s commitment to social and environmental responsibility. Some businesses may choose to be both a Benefit Corporation and obtain B-Corp Certification to demonstrate their dedication to a higher standard of corporate responsibility.