in Change Agents, People

B Corporations

The B Lab Company (B Lab) is a nonprofit (IRS Form 990 N.E.C. (W99) that serves a global movement of people using business as a force for good.  Located in Berwin, PA (EIN20-5958773 its mission is “to change the operating system, culture, and practice of business so that all companies compete to be best for the world.  In 2020 it self-reported about 12M in revenue and 10M in expenses (Guidestar).

Is B Corp Certification Worth It?

A Certified B Corporation® (here) does not refer to tax status; it describes a business with a particular mission to promote the public good in certain ways. B Corp Certification measures a company’s entire social and environmental performance. The B Impact Assessment evaluates and verifies operations and business model impact on workers, community, environment, and customers.

Transparency and accountability requirements are used but do not prove where a company excels, however it commits a company to the long-term changes in a company’s legal structure.  A true Benefit Corporation is formed under state law. A list of NYS statute-produced corporations (here) does not include businesses with B Lab certification.

Public authorities have the power to create subsidiary authorities without additional legislative authorization. An example is 2007, the Empire State Development Corporation, (ESDC) dissolves 13 of its subsidiaries and merged 25 others into a single holding company and still encompasses many subsidiary organizations. While major public authorities can only be created by special legislation, many local development corporations have been created under the General Not-For-Profit Corporation Law as Local Development Corporations (LDC). They function in much the same way as other public benefit corporations and public authorities, but do not need to be established by specific state legislation and like businesses seek B Corp Certification. The speculation is the surge in interest seeks to soften the negatives associated $1.5 trillion tax cut package in 2018. Even B Lab posts an apology for certification delays.

Should a new startup seek a B Corporation Certification as a means to link other studio and production activities?  One way to find out is to look at the current group that has certification in New York. Using the B Lab directory the following selection of B Corporations based in New York City and nearby areas can be explored. The image to the right exhibits a selection from the B Corp directory. Use it (here) for individual searches not found on the list to the left. Reviews are requested and held in confidence. Use the contact link (here).

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