A few months back I sat on a panel to discuss Non-Profit Sustainability and Social Entrepreneurship. You can check out the video here.
I was asked to provide some comments on B Corps – or Benefit Corporations.
To cover some basics –
B-Corps have a dual purpose –
- To create profit and
- “create a material positive impact on society and the environment”
B-Corps also impose heightened fiduciary duties on board of directors, require the Board to consider social/environmental consequences for board decisions.
These “heightened fiduciary duties” is contrasted with the setting of the traditional corporation – where the shareholders appoint the board of directors who make decisions to maximize profits to the shareholders.
History of B-Corps:
Maryland was the first state to enact B Corp legislation in 2010.
In 2012 – there were 7 states with B Corp legislation enacted.
Today: 31 states (and counting) with B Corp legislation enacted.
Michigan is still not one of those states.
To me, this increase in number of B Corp states acknowledges that millennials and others joining the work force today want to be part of business that does social good.
A question that Michigan legislators must be wrestling with – do we join the trend? Or could allowing for B-Corp formation/conversion, cause a detriment to existing business?
If there is data on that point, I haven’t seen it.
Questions? Comments?
e-mail: Jeshua@dwlawpc.com
Twitter: @JeshuaTLauka
Purpose Driven General Counsel 
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