The B Corporation: A New Kind of Company for a New Sector of the Economy


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In this 2009 Sustainable Brands presentation, we learn about the power that "B's" in B Corporations. What they are, why every business should gear up to become one, and how they are set on shaping the future of new enterprise and public policies.

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  • to drive public policy, capital and consumer markets
  • Salesforce, Net Suite, and Inspire Commerce along with 20 other service partners. Standards provide leverage to move markets. ‘What the outstanding person does, other try to do. The example he sets will be followed by the whole world’. - Bhagavad Gita
  • The B Corporation: A New Kind of Company for a New Sector of the Economy

    1. 1. The B Corporation A New Kind of Company For a New Sector of the Economy The Certified B Corporation
    2. 2. Quick Background B Lab is a nonprofit started by 3 businesspeople with successful 15 year careers as Entrepreneurs, Operators, Investors MSD Capital, L.P. $250 MM Brand $13B Private Equity
    3. 3. What is a B Corporation? The B Corporation is a new kind of company which uses the power of business to solve social and environmental problems - Meets higher standards of social and environmental performance, accountability, and transparency - Amplifies voice for a diverse marketplace through the power of the unifying B Corporation brand
    4. 4. B Corporation – Performance Standards B Ratings System • Tool for impact assessment & improvement – Comprehensive, transparent, and comparable – Dynamic – Independent governance (Standards Board) • Not just for certification (i.e. 4,000+ registered users) • Version 2.0, including industry addendums, in beta testing
    5. 5. B Corporation – Legal Standards B Corporation Legal Framework • Amends Articles to redefine ‘best interests’ to include consideration of the impact of decisions not only on shareholders, but also stakeholders • Benefits - protection for Directors to consider non-financial interests - accountability to shareholders to uphold new definition - survives new management, capital and ownership - no additional liability to non-shareholders • Developed by Jones Day, Linklaters, and Drinker Biddle to work within existing corporate law
    6. 6. Why B Corps Matter Standards provide leverage to move markets Give Me a Place to Stand And I Will Move the Earth
    7. 7. Why B Corps Matter - Accountability Expand corporate accountability through new legal framework 20th Century 21st Century Shareholder capitalism Stakeholder capitalism Maximize Create shareholder value social and shareholder value exclusively simultaneously
    8. 8. Why B Corps Matter - Impact Drive social impact through third party standards Consumers Certified sustainable businesses Investors Emerging asset class: Impact Investments Policymakers Sustainable procurement/tax incentives Companies Sustainable supply chains
    9. 9. Significant Momentum - Companies Companies Diverse and growing community of leaders Financial Services Consumer Products Business Services Outside U.S.
    10. 10. Significant Momentum - Marketplace Marketplace emerging around standards Companies Standards Partners 195 B Corps, 31 industries Salesforce, BALLE, BASE, $1B revs, $6B assets WorldofGood/Ebay Standards Policymakers Media State, Local, Federal PR + GOOD Business, Sust Ind, Care2 new corp form + incentives Investors Due diligence, investment preferences, social stock exchanges, GIIRS
    11. 11. Historic Opportunity To create social impact through business and transform corporate accountability - Chorus of prominent voices - Gates, Creative Capitalism - Yunus, Social Business - Blood&Gore, Friedman, Sustainable Economy - Financial crisis -
    12. 12. Seizing the Opportunity B Lab builds infrastructure; B Corps define a marketplace. Today Leading companies 3-5 Years Vibrant marketplace In a generation New sector of the economy
    13. 13. Why become a B Corporation? Influence public policy and capital markets • Create a new corporate form • Establish tax and procurement preferences • Drive capital from SRI to Impact Investing Support your business • Save money ($600k in annual recurring savings) • Maintain mission post capital raise, liquidity event, or succession • Differentiate through third party certification • Be in the company of recognized leaders
    14. 14. Thank you ‘What the outstanding person does, other will try to do. The example he sets, will be followed by the whole world.’ - Gita