B Corporations address two critical problems which hinder the creation of social and environmental impact through business:
- The existence of shareholder primacy which makes it difficult for corporations to take employee, community, and environmental interests into consideration when making decisions; and
- The absence of transparent standards which makes it difficult for all of us to tell the difference between a “good company” and just good marketing.
B Corporations’ legal structure expands corporate accountability and enables them to scale and achieve liquidity while maintaining mission. B Corporations’ transparent and comprehensive performance standards enable consumers to support businesses that align with their values, investors to drive capital to higher impact investments, and governments and multinational corporations to implement sustainable procurement policies.