B Corps Disadvantages
3. Do additional research on B Corps. What are the advantages and disadvantages of B Corps? Name some other successful B Corps. In your estimation, are B Corps a better model for socially responsible firms? Why or why not?
B-Corp certification, a new business classification that scores companies on a 200-point scale, is done on a state-by-state basis and allows companies to demonstrate higher standards of corporate purpose, accountability and transparency [3]. It also permits businesses to make decisions based on social and environmental impact, rather than just profits. Some advantages of B corps that these firms have an explicit social or environmental mission and takes into account the interests of workers, the community and the environment as well as its shareholders. With a Composite B score of 143, Greyston is “a leading model for social enterprise building a coalition with employees, community and shareholders” [4]. These companies still make profits to continue their business but this legislation allows them to consider society’s needs as well as the needs of their employees in union with making profit. The benefit promotes social interests while still generating an investment return. B Corporations must provide a “specific public benefit” as defined in the state’s legislation for example bettering the environment or reducing poverty. B Corps meet the highest standards of verified social and …show more content…
Expanded reporting requirements is a major drawback in operating a benefit corporation. Transparency is an important aspect for a benefit corporation hence an annual report to the shareholders and the public is must. The report also includes the Corporate Director’s opinion on whether the benefit corporation operated in accordance to its specific purpose and if it did not, they are supposed to give
B-Corp certification, a new business classification that scores companies on a 200-point scale, is done on a state-by-state basis and allows companies to demonstrate higher standards of corporate purpose, accountability and transparency [3]. It also permits businesses to make decisions based on social and environmental impact, rather than just profits. Some advantages of B corps that these firms have an explicit social or environmental mission and takes into account the interests of workers, the community and the environment as well as its shareholders. With a Composite B score of 143, Greyston is “a leading model for social enterprise building a coalition with employees, community and shareholders” [4]. These companies still make profits to continue their business but this legislation allows them to consider society’s needs as well as the needs of their employees in union with making profit. The benefit promotes social interests while still generating an investment return. B Corporations must provide a “specific public benefit” as defined in the state’s legislation for example bettering the environment or reducing poverty. B Corps meet the highest standards of verified social and …show more content…
Expanded reporting requirements is a major drawback in operating a benefit corporation. Transparency is an important aspect for a benefit corporation hence an annual report to the shareholders and the public is must. The report also includes the Corporate Director’s opinion on whether the benefit corporation operated in accordance to its specific purpose and if it did not, they are supposed to give