What is a B Corporation (Benefit Corporation)?

A B Corporation is a for-profit company certified to meet rigorous standards of social and environmental performance, accountability, and transparency. It balances profit-making with positive societal impact.

Key Features

  • Legal obligation to consider stakeholder (not just shareholder) interests.

  • Regular impact assessments by B Lab, the nonprofit that awards B Corp certification.

  • Required public reporting of social and environmental performance.

Example

A food brand certified as a B Corp commits to sustainable sourcing, ethical labor practices, and community impact programs, alongside its profit objectives.

Benefits

  • Enhances brand reputation and customer loyalty.

  • Attracts mission-driven talent and investors.

  • Differentiates from conventional corporations in socially conscious markets.