B Corporation

For the last 35 years, social entrepreneurs have created thousands of profitable businesses across diverse industries demonstrating that companies can "do well" while "doing good". For-profit social entrepreneurship, social investing, and the responsible business movement have reached critical mass and are now at an inflection point. Accelerating consumer and investor demand has created momentum that, if channeled properly, will result in the formation of a new sector of the economy which harnesses the power of private enterprise to create public benefit.

The current marketplace, however, is confusing and fragmented. Increasingly, everyone claims to be green, responsible, or sustainable, making it difficult to distinguish between "good" companies and "good" marketing. In addition, there are too many issue-specific certifications and broad associations with no standards of social and environmental performance. With no clarity for consumers and investors, markets will languish.

There is also a root problem of system design and corporate culture. Corporations are required by law to maximize shareholder returns often to the exclusion and detriment of employees, community, and environment. This problem makes it difficult for profitable, responsible businesses to scale and create liquidity without compromising their values.

We need an organizing platform to accelerate the development of purpose-driven capital and consumer markets. This platform must 1) make it easier for consumers and investors to support "good" companies; and 2) create a legal framework for a new type of corporation which creates benefit for all stakeholders, not just shareholders. Introducing the B Corporation.

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