Benefit Corporations and Corporations Are Similar and Often Confused with Each Other but There Are Several Differences That Separate the Two

Benefit corporations and corporations are similar and often confused with each other but there are several differences that separate the two.

According to Cultivating Capital, B-corporations can be defined as “for-profit companies certified by the nonprofit B-Lab to meet rigorous standards of social and environmental performance, accountability, and transparency,”(Carolina Miranda, 2018). This qualification shows that the corporation is part of a movement dedicated to creating a more fair-minded economy. A benefit corporation “status is a type of legal structure for businesses. It is not a certification, and it is available only in those states which have passed benefit corporation legislation,” according to U.S. Small Business Administration (Sarah Field, 2015). In other words, any corporation can become a B-corporation by meeting several of the B-Lab’s requirements. One requirement is that they “must receive an 80 or higher on the B-impact assessment,” and the results must be certified by the B-Lab, stated by Connecticut Innovations (Olaja Naeem, 2017). This allows the B-lab to not only assess a corporations impact. On the other hand, a benefit corporation is self-reporting but “must have actions assessed by a third-party measuring impact on environment and society,”(Olaja Naeem, 2017). The purpose of the third party is for a corporation to check its own progress of the corporation. The difference between these ideas is that a B-corporations assessment score must be recertified every two years while a benefit corporation must file an assessment each year but do not need to be certified

Another important distinction between B-corporations and benefit corporations is their accessibility. Benefit corporations currently have only been passed in “26 states and the District of Columbia,” seriously limiting the availability of benefit corporations to only about half of America (Olaja Naeem, 2017). However, the B-lab certifies corporations internationally and has certified companies in “over 130 industries from 50 countries,” as reported by B-Corporation (Jonathan Storper 2018). This allows companies outside of America to become B-certified corporations, such as the New Belgium Brewing Company.

The New Belgium Brewing Company is a B-certified corporation and has been for several years. While the minimum score of 80 is required to become a B-corporation, the brewing company has scored “143 out of 200 on the B-Impact Assessment, placing the company