Good afternoon, all. It has been a while since my last post – I hope you all have been enjoying the summer.
I usually include in these posts a recent photo of downtown Grand Rapids where my office overlooks Rosa Parks Circle.
On one of my walks downtown last week I decided to take a different photo – the memorial of Rosa Parks – the courageous woman who this part of downtown Grand Rapids is named after.
It is wonderful to see Rosa Parks, and all that she stood for, honored – prominently at the intersection of Monroe Center and Monroe Avenue.
People, particularly vulnerable people, who stand up for what is right, even in the face of fierce opposition, should be honored.
West Michigan is truly a unique place where business and philanthropy intersect unlike any other place. Giving of time, talents and treasure to worthy causes is embedded in the culture of this community.
Because business as a force for good is part of the fabric of Grand Rapids, it only makes sense to me that social enterprises such as benefit corporations should be able to thrive in West Michigan.
BCorp Certification is Trending in Michigan…
Over the last several years more and more local businesses have becoming Certified B Corps through BLabs. West Michigan has the most concentration of BCorp businesses in the State.
Check out a March article from Rapid Growth Media on the strong presence of Bcorps in West Michigan.
Headlines in Grand Rapids have brought attention to the need for businesses to ask the question: Am I working to build a better community?
B-Corp certification is one way (certainly not the only way) for businesses to hold themselves accountable to being a good community partner.
Unfortunately, Michigan has no legal framework for BCorps – yet.
BCorps?
A few months back the State House tantalized social entrepreneurs, once again, with the possibility of benefit corporations (“Bcorps”) becoming a viable legal option to do business in the State of Michigan.
House Bills 5867, 5868 & 5869 were introduced on April 24, 2018, that would allow BCorps to be formed under Michigan Law.
There has been no movement on this bill.
Back almost two years ago the legislature proposed similar legislation which died in committee. For a review of the Former BCorp Bills, the House Fiscal Agency issued a Fiscal Analysis, check it out here.
The Analysis provides good background on what the legislation would do. This is helpful for those who are not overly familiar with BCorps in general.
The latest proposed Bcorp Legislation
The current Bcorp legislation has some different language than the 2016 proposed language. I am assuming it conforms with the model BCorp Legislation. One difference is the definition of “general public benefit” to “specific public benefit” which would be defined under the new Bcorp law as:
“SPECIFIC PUBLIC BENEFIT” INCLUDES, BUT IS NOT LIMITED TO,
ANY OF THE FOLLOWING:
(i) PROVIDING LOW-INCOME OR UNDERSERVED INDIVIDUALS OR
COMMUNITIES WITH BENEFICIAL PRODUCTS OR SERVICES.
(ii) PROMOTING ECONOMIC OPPORTUNITY FOR INDIVIDUALS OR
COMMUNITIES BEYOND THE CREATION OF JOBS IN THE NORMAL COURSE OF
BUSINESS.
(iii) PRESERVING THE ENVIRONMENT.
(iv) IMPROVING HUMAN HEALTH.
(v) PROMOTING THE ARTS, SCIENCES, OR ADVANCEMENT OF KNOWLEDGE.
(vi) INCREASING THE FLOW OF CAPITAL TO ENTITIES THAT HAVE A
PUBLIC BENEFIT PURPOSE
Education on the “why” for BCorps.
Interested groups and local politicians have been educating the public on why BCorp laws would be a good thing for our state.
State Rep Hank Vaupe gave a discussion to a local chamber group on B-Corps two Septembers ago:
As Rep. Vaupe indicated “benefit corporations provide an opportunity for businesses to use the markets, rather than traditional charity giving, to advance their philanthropic missions.”
Michigan is behind the ball.
Over the last several years Michigan legislators have repeatedly introduced BCorp legislation – to no avail.
Check out this handout from Rep Barnett almost 8 years ago in support of the BCorp legislation he proposed in September 2010.
I found particularly interesting the very last section – it provides some comment on why some Michigan businesses may have been averse to the introduction of BCorp legislation. Feel free to read it and reach your own conclusions.
Michigan now ranks as one of the vast minority of states that has not enacted benefit corporation legislation.
Check out the Benefit Corporation website for a state by state legislative analysis.
Of particular note, just a few months back in February our neighboring State of Wisconsin has enacted Bcorp legislation.
I am hopeful for a more meaningful update on these Bills in the months to come…
Questions? Comments?
Jeshua@dwlawpc.com
Connect with me on Twitter: @JeshuaTLauka
Purpose Driven General Counsel 