B Corps, Benefit Corporations, Triple Bottom Line
-
Upload
jonathan-press -
Category
Documents
-
view
22 -
download
1
Transcript of B Corps, Benefit Corporations, Triple Bottom Line
Professor Ofira Ayalon | Jonathan Press & Elana Bartfeld | June 29th 2015
B Corps: The Future of Triple Bottom Line & CSR
CSR and Triple Bottom Line-There are positive changes in companies that use CSR.-Struggles of Triple Bottom Line:
~No set guidelines, indexes, or structure. (+) Broad interpretation and flexibility (-) Can be confusing and lead to less adoption
Not To Be Confused: Differences
Benefit Corporation-Legal Status Conferred by State Government
-Annual reports not required to be certified or verified from a 3rd party organization
-Corporate status recognized by 26 states
-Not as widely adopted as Certified B Corps
-Slow growth
-Lower visibility
-Self Assessment
Certified B Corps-Conferred by Non-Profit B Labs.
-Social and Environmental Performance Assessment
-Services that Benefit Corporations Don’t Receive---Marketing, Sales, Raise Money (Global Impact Investing Rating System), Save Money
-Annual Reports Assessed by Third Party Standards
-Available in all 50 States, and All Over The World
-1307 Corporations, 41 Countries, 121 Industries
Definitions and StandardsThe B Impact Assessment simply builds upon the important work that other organizations and industry groups are doing to define and measure impact. >> Carbon reports must be easily comparable.
Global Reporting Initiatives definitions and reporting standards are a critical part of the B Impact Assessment.
GRI indicator shows if a company is reporting its emissions according to best practice.
B Impact Assessment evaluate if company increase/decrease emissions relative to revenues or practices of other businesses.
Helps consumers, investors, institutions who want to support businesses who put their values into action.
Environment, Worker, Community
In a rapidly growing, dynamic, globalized business environment, businesses need a clear way to communicate to stakeholders that they are a good company.
Trend of pure corporate & shareholder benefit is nearing it’s end.
With B Labs support, a company can show stakeholders that they care for the environment, their workers, and their community.
B Corps → advocates to state governments to adopt CSR friendly corporate law framework for Triple Bottom Line implementation.
B Corp Assessment1. Meet performance requirement
a. Score at least 80/200 on the B impact assessmentb. Complete an assessment review with B Lab staffc. Submit supporting documentationd. Complete a disclosure questionnaire
*about 10% a year selected for on-site review*these steps must be completed every 2 years*The assessment varies depending on the company's size (number of employees), sector, and location of primary operation.
http://search.proquest.com/docview/904035434?accountid=14544
B-Corp Assessment contd.
2. Meet Legal Requirements
a. Determine: amend or obtain Benefit corporation status in your state
b. If necessary: engage key board members, legal counsel, and investors about
usefulness/implications of legal changes for raising money, selling the business,
& directors' liability.
c. Obtain board approval of your planned amendment
d. Obtain shareholder approval of your board-approved amendmendment
e. If Corporation → file amended articles with Secretary of State within 1 year
B-Corp Assessment contd.
3. Make it official!
a. Sign B-Corp declaration of interdependence & term sheet
b. Pay user fees based on company value
c. Earn the badge
AccountabilityB Lab's Standards Advisory Council → Independent committee of 20-22 members● All respected in the field ● Deep industry or stakeholder expertise
Council oversee content weightings of B Impact Ratings System for companies/funds in two groups:1. Developed markets2. Emerging markets
All for One & One for All★ Startups, SMB’s
★Multinational Corporations, Franchises, Subsidiaries
★ International Companies Outside USA or Canada
Successes❏ Rapid growth
❏ Standardizing
❏ Simplifying
❏ Accessible to all businesses
❏ Trustworthiness
❏ Transparency
B-Corps—A Growing Form of Social Enterprise: Tracing Their Progress and Assessing Their PerformanceXiujian Chen1 and Thomas F. Kelly1 - Journal of Leadership & Organizational Studies 2015, Vol. 22
“B-Corps with the B Impact Score in the top quartile exhibit a stronger revenue and employee productivity growth rate than B-Corps in the bottom quartile. If this level of performance continues, it will enable B Lab and B-Corps to claim that these business organizations have a robust financial performance in addition to their significant level of social responsibility and environmental compatibility.”
Criticisms❏ Financial sustainability not measured
❏ B Corp status does not ensure revenue growth
❏ New ventures are challenging
❏ Investment into social and environment can put new
businesses at risk/under more pressure
❏ When will regulators scale up? >> Domestic & International
❏ Erase and Replace: Old Corporate Law
Sources:
http://brandgeek.net/2014/11/23/golite-gone-trademark/
http://www.triplepundit.com/2014/08/whats-difference-certified-b-corps-benefit-corps/
https://www.bcorporation.net/what-are-b-corps
http://link.springer.com/article/10.1007%2Fs10551-012-1254-1
http://www.brynmawr.edu/businessworkshops/management/documents/Lencioni-Makeyourvaluesmeansomething.pdf
http://www.triplepundit.com/2011/05/corp-status-protects/
http://strongertogether.coop/fresh-from-the-source/b-corp-a-new-kind-of-corporation/
http://boss.blogs.nytimes.com/2012/03/14/for-b-corps-a-new-corporate-structure-and-a-triple-bottom-line/?_r=0
André, Rae. "Assessing The Accountability Of The Benefit Corporation: Will This New Gray Sector Organization Enhance Corporate Social Responsibility?." Journal Of Business Ethics 110.1 (2012): 133-150. Philosopher's Index. Web. 15 June 2015.
Hasler, Jacob E. "Contracting For Good: How Benefit Corporations Empower Investors And Redefine Shareholder Value." Virginia Law Review 100.6
(2014): 1279-1322. Business Source Complete. Web. 5 June 2015.
Chen, X., and T.F. Kelly. "B-Corps—A Growing Form Of Social Enterprise: Tracing Their Progress And Assessing Their Performance." Journal Of
Leadership And Organizational Studies 22.1 (2015): 102-114. Scopus®. Web. 2 June 2015.