All small businesses in Southern Arizona work to make a profit but some also provide tangible benefits to our society and environment. Do you want to use your small business as a force for good? If so, your business can be classified as a Benefit Corporation or Certified B Corporation.
According to Sarah Field, author and moderator for the SBA.gov Community, the difference between the two is one of the most confusing aspects of a recent movement for companies focused on giving back.
Arizona’s legislation creating the Benefit Corporation became effective on Dec. 31, 2014. A Benefit Corps’ corporate purpose creates a positive impact on society and considers the impact of their decisions on workers, the greater community, shareholders, and the environment. Benefit Corporations are required to provide an annual public benefit report but do not have to be audited or certified. Use this link to download a guide on how to become a Benefit Corps in Arizona: http://tinyurl.com/netmwk5
Certified B Corporations pledge to achieve social goals as well as business ones and are certified (see www.bcorporation.net) and meet rigorous standards of social and environmental performance, accountability, and transparency.
B Corps identifies companies, like Ben & Jerry’s and Patagonia, that are focused on doing good from companies that just to publish do-good marketing. These companies are working to redefine business success in terms of doing what is best for the world around them.
According to bcorporation.net, Certified B Corps in Tucson include Goodman Interior Structures, Dev Equity, LLC and Technicians for Sustainability.
The benefits of B Corps include attracting and retaining top talent and customers, while drawbacks involved increased reporting requirements to prove to shareholders that your business is achieving its purpose.
There are a few legal requirements to consider such as stating your Benefit Corp/B Corp status in your articles of incorporation to highlight a specific purpose such as benefitting the arts, improving public health, etc.
Certified B Corps and Benefit Corporations enable community- and environmentally-minded business owners to preserve their social goals without sacrificing the ability to make a profit. See details at http://tinyurl.com/olclm76.
