B-Corporations: The concept of
providing a structure that requires directors and officers of a corporation to
consider the beneficial social and environmental impacts of their decisions in
conjunction with financial performance can be a simple and powerful approach to
business.
This relatively recent construct can
provide benefits along with associated risks, some of which are discussed in
the recent San Francisco Chronicle article,"Plum Organics’ quest to do good poses legal risk to Campbell Soup".
B-Corporations go far beyond
marketing concepts, by providing a corporate framework where lack of delivery
can be challenged. With an intent to ensure that
B-Corporations deliver real value, third party standards for certification and
audit (voluntary) will continue to evolve as market demands and legal
challenges by shareholders grow and mature.
The pros and cons of B-Corporations
are a topic of debate: can they be successful, are they practical and
sustainable, can they be widely implemented.
Time will tell whether
B-Corporations can meet the joint challenge of fiscal performance alongside
social and environmental benefits.
What do you think?
