B Corporation Structure Mainly a Branding Opportunity
Stoel Rives corporate partner Jason Brauser discussed in Sustainable Business Oregon efforts by social benefit corporation advocates to pass a B Corporation statute in Oregon. Benefit corporations generally function the same way as traditional corporations, but also require (1) a corporate purpose to create a material positive impact on society and the environment, (2) a fiduciary duty to consider the interests of workers, community and the environment, and (3) an annual public report on overall social and environmental performance against a comprehensive, credible, independent, and transparent third party standard.*
Brauser noted that a B Corporate structure mainly offers companies branding opportunities, since LLCs can already meet social and environmental obligations by building such objectives into their operating agreements. "Right at the moment, we are not seeing a huge market opportunity [for B corporations], he said. "I think there's a lot of talk about these things but in terms of a desire to change their corporate documentation or advocate for legislative change . . . we're not seeing a lot of demand for it."
Read the Sustainable Business Oregon article
"Lawyers eye social-good companies" was published by Sustainable Business Oregon, June 29, 2012.
* See, http://www.bcorporation.net/publicpolicy