B Corporation. It’s clear that as long as companies have the maximisation of profits for shareholder benefit as the cornerstone of their existence, we will continue to experience greed, corruption and Enron type corporate ‘dislocation’. And this current fake ‘social responsibility’ hype needs to be trashed too, and quickly.
So it’s extremely interesting to see the launch of this new alternative standard for incorporation which puts social and environmental responsibility at the heart of the corporate charter. This shift from shareholder returns to stakeholder values is a significant and powerful initiative which really needs to be entrenched in the commercial world. Let’s hope it catches on…
How to Become a B Corporation? To become a B Corporation, you have to do two things: First, meet comprehensive and transparent social and environmental standards via the B Rating System. * By meeting these standards, we set a benchmark which distinguishes “good companies” from “good marketing”. And we make it easier for consumers and investors to support these companies. Second, amend your corporate governing documents to incorporate the interests of employees, community and the environment. * By institutionalizing your values, you make it more likely that those values will survive new investors, new management, and even, someday, new owners.
