B Corp Certification

Ben Anderson Andy FyfeJessica Friesen

1.Overview of B Lab & Vision

2.Why certify as a B Corporation

3.How to Get Started

Agenda

B Lab is serving a global movement ofPeople Using Business as a Force for Good

So that one day all companies compete to be Best for the World

And society enjoys ashared and durable prosperity.

Evolution of Business

• A certification conferred by the non-profit B Lab

• A company that meets a high level of social and environmental performance AND makes a legal commitment to consider all stakeholders

• Any for-profit company in any country can pursue certification (LLC’s included)

• A corporate form (taxed like a C-corp or an S-corp) that has a higher level of transparency, accountability and purpose

• A legal entity that has protection and permission to consider its impact on all stakeholders, not just shareholders

• Available in 27 states in the U.S.

Certified B Corp vs. Benefit Corporation

People are Demanding Better

Serving a Global Movement

Stakeholder Governance

Impact Measurement

Certified B Corps

Verified High Impact

Companies Built to Last with Legal

1,300

Mission Alignment

Benefit Corps and Companies with Legal

Amendments

2,500

Measure What Matters

B Impact Assessment Users:

GIIRS, Best for NYC, Suppliers

30,000

B the Change

Aspirational and/or Aligned

Companies, Consumers,

Citizens

MillionsLow

High

HighLow

People Using Business as a Force for Good

Poll:

How interested are you in B Corp Certification?• I’m doing it• Interested, but something is standing in the way• I’m curious, but need to be convinced• Not interested• N/A

B Corporations

The B Corporation certification is to business what Fair Trade is to coffee orUSDA Organic is to milk.

1. Social & Environmental Performance

2. Transparency 3. Accountability

Companies using business as a force for good.

They meet verified higher levels of:

“B Corp certification

further signals to our stakeholders

(coworkers, customers,

suppliers, and community) that our values are

truly at the core of our business.”

What is a B Corporation?

B Corp Community = Good Company to Keep

• San Francisco, CA• Home & Personal Care

Mission: To put the hurt on dirt without doing harm to people, creatures, or our planet

Pays suppliers to reduce their carbon emissions

Bottles are made from 100% recycled plastic

• Fort Collins, CO • Beer Brewer 100% employee-owned $1 donated to non-profits for

every barrel of beer produced

B Corp Community = Good Company to Keep

Recent Developments

“There’s a lot more authenticity in the process today and there’s a lot more strategy around long-term shareholder value.

- Dave Stangis, VP Corporate Affairs and Social Responsibility, Campbell Soup Co.

B Corps in the Public Market

Storytelling and Retail Success

B2B & Consumer Awareness

Community & Fun

Collaboration

“The B Corp movement is one of the most important of our lifetime, built on the simple fact that business impacts and serves more than just shareholders – it has an equal responsibility to the community and to the planet.

Patagonia has been a 40-year experiment in what it means to be a responsible company, and becoming a B Corp has ensured that our experiment will keep pushing forward.”

- Rose Marcario, Patagonia CEO

Lead a Movement

The Case for Certification

B Corp Certification helps companies:

1. Maintain Mission

2. Differentiate from Pretenders

3. Benchmark and Improve Performance

4. Attract and Engage Talent

5. Collaborate with Peers

6. Save Money and Access Services

7. Generate press

8. Raise Capital

Learn more here: http://www.bcorporation.net/become-a-b-corp/why-become-a-b-corp

Why Certify?

Why are you interested in becoming a B Corp?

• Maintain Mission

• Differentiate from Pretenders

• Benchmark and Improve Performance

• Attract and Engage Talent

• Other

Poll:

Adopting the B Corp legal standards:

• Bakes the values of the company into its legal DNA

• Gives protection and permission to consider non-financial stakeholders (community, employees, suppliers, environment)

• Ensures that mission can survive through new management, succession, or ownership

Yvon Chouinard, Patagonia First to register as a benefit corporation

in CAJanuary, 2011

“Benefit corporation legislation creates the legal framework to enable mission-driven companies like Patagonia to stay mission-driven through succession, capital raises, and even changes in ownership, by institutionalizing the values, culture, processes, and high standards put in place by founding entrepreneurs.” – Yvon Chouinard

1. Maintain Mission

2. Differentiate from Pretenders

Jennifer McKaig

“The biggest surprise to me was realizing that our employees deeply cared about the things the B Impact Assessment measured.”

3. Benchmark & Improve Performance

“B Corps are 46% more likely to have satisfied and engaged employees than ordinary businesses.” – B Analytics

“Employees who are satisfied in their jobs because they believe in what they are doing have 16% better overall performance and 125% less burnout than their peers.” Harvard Business Review

“Almost two-thirds of millennials said they would rather make $40,000 a year at a job they love than $100,000 a year at a job they think is boring.” Forbes

• B Corp certification provides a platform to engage current staff and give employees more meaning in their work

4. Attract & Engage Talent

5. Collaborate with Peers: The Hive

Champions Retreat 2015Oct.13-15 in Portland, OR & Skamania Lodge

Access to a suite of partnerships and discounts• NetSuite – ERP software discount• Salesforce – Software discount• TrustLaw – Legal advice• Intuit – Software discount• B Corp Jobs Board – Free postings

Tuition Discounts / Forgiveness• Yale School of Management • NYU Stern School of Business• Presidio Graduate School • Golden Gate University

6. Save Money & Access Services

7. Generate Press: Examples

• The B Corp certification helps attract aligned investors so that companies can scale their impact

8. Raise Capital

"We raised capital and our lead investor was also a Certified B Corporation. The B Corp connection meant access to capital from mission-aligned investors."

David Murphy, Chairman

8. Raise Capital

The Path to Certification

• For-Profit Companies of Any Size

• Any Industry / Geography

• Customized assessment based on industry, size, geography

• Any Legal Structure (sole proprietors, LLC’s, Corporations, etc.)*

• Companies over 1 year old – special Pending B Corp program for start-ups*

Who Can Certify?

Step 1: Meet Performance Requirement Complete the B Impact Assessment and earn a reviewed minimum score of 80 out of 200 points

Step 2: Meet Legal RequirementDetermine the path for your corporate structure and state of incorporation

Step 3: Make it OfficialSign the Declaration of Interdependence, pay certification fees and and put a profile up on bcorporation.net

To learn more, visit:www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp

How Does a Company Certify?

Governance• Transparency• Ownership

Workers• Job Growth• Compensation &

Benefits• Employment

Practices• Work Environment• Employee

Ownership

Community• Suppliers• Local• Diversity• Charity /

Volunteerism

Environment• Energy Use• Facilities• Supply Chain• Manufacturing

+ Impact Business Models• Direct Impact

Products /Services• Targeting

Underserved Communities

• High Impact Supply Chain

Step 1: Meet Performance Requirement

Adopting the B Corp legal standards:

• Bakes the values of the company into its legal DNA

• Gives protection and permission to consider non-financial stakeholders (community, employees, suppliers, environment)

• Ensures that mission can survive over time

Step 2: Meet Legal Requirement

Legal Requirements Term Sheet & Certification Fees Sign B Lab Term Sheet

Certification term is 2-years Participate in on-site review if

randomly selected (10% of Certified B Corps randomly selected each year)

Sign the Declaration of Interdependence,

Pay certification fees• Annual certification fees based on

the tiered structure

Put a profile up on bcorporation.net

Step 3: Term Sheet & Fee

What’s your next step for moving forward?

• Start or complete the B Impact Assessment

• Improve my score to be over 80

• Preserve my mission

• Complete documentation

• Other

Poll:

Explore the Handbook

B Impact Assessment: http://bimpactassessment.net/

How to Certify as a B Corp: http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp

Legal Requirements: http://www.bcorporation.net/become-a-b-corp/why-become-a-b-corp/protect-your-mission

FAQ for Investors & Directors: http://www.bcorporation.net/sites/all/themes/adaptivetheme/bcorp/pdfs/faqs_investors_and_directors4.pdf

Pending B Corp Status for Start Ups: http://www.bcorporation.net/become-a-b-corp/how-to-become-a-b-corp/steps-start-ups

Case Studies: http://bimpactassessment.net/case-studies

B Corp Press: http://www.bcorporation.net/news-media

Resources

Jessica FriesenB Lab: Community Teamjessica@bcorporation.net

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