Certified B Corps and benefit corporations are two types of social enterprises that aim to balance profit and social responsibility. Certified B Corps are certified by B Lab, undergo impact assessments, and must meet certain standards of social and environmental performance. Benefit corporations are a legal status conferred by state governments that requires companies to consider impacts on stakeholders. While both aim for a triple bottom line, certified B Corps have more rigorous third party assessment and standards. They are growing rapidly with over 1,300 corporations worldwide compared to slower growth of benefit corporations in only 26 states so far.

1. Professor Ofira Ayalon | Jonathan Press & Elana Bartfeld | June 29th 2015
B Corps:
The Future of Triple
Bottom Line & CSR

2. People
Planet
Profit

3. 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

4. Complexity
Simplicity

5. Source: http://www.triplepundit.com/2014/08/whats-difference-certified-b-corps-benefit-corps/

7. 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

8. Definitions and Standards
The 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.

9. Capitalism 2.0

10. 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.

12. B Corp Assessment
1. Meet performance requirement
a. Score at least 80/200 on the B impact assessment
b. Complete an assessment review with B Lab staff
c. Submit supporting documentation
d. 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

13. 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

14. 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

15. Accountability
B 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 markets
2. Emerging markets

16. All for One & One for All
★ Startups, SMB’s
★ Multinational Corporations, Franchises,
Subsidiaries
★ International Companies Outside USA or
Canada

17. Successes
❏ Rapid growth
❏ Standardizing
❏ Simplifying
❏ Accessible to all businesses
❏ Trustworthiness
❏ Transparency

18. B-Corps—A Growing Form of Social Enterprise: Tracing Their Progress and Assessing Their Performance
Xiujian 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.”

19. Successful B-Corps Companies

20. 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

21. Coming Soon To Israel

23. Questions?
Thank You!

24. 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.

25. Source: B Lab
Certified B
Corps &
Benefit
Corporations: