Tuesday, September 1, 2009
The Christian Science Monitor recently ran a story on the growing trend of socially conscious businesses forming (or re-forming) as B Corporations. The B Corp concept (B stands for social benefit) has not yet, so far as I know, been adopted by any states, but corporations can dedicate themselves to a socially responsible future by registering with B Lab, a nonprofit organization, and agreeing to comply with its dictates such as committing irrevocably to socially responsible business activities,taking cognizance of stakeholder concerns, and conducting an annual social benefit audit and report. If the corporation complies, it receives whatin essence a Good Housekeeping Seal of Approval from B Lab and can describe itself as a B Corp.
According to the article, two hundred corporations have committed to socially beneficial practices by registering with B Lab. Organizers think they will have three hundred by the end of this year. When I last read about B Corporations a few months ago I saw no evidence that boosters were arguing for tax benefits for B Corporations; however, the article reports that B Lab founders are urging Obama administration officials to consider taxing them at lower rates.