B Corporation (B Corp) analysis and cross law comparison study of the benefit corporations

Abstract

The objective of this paper is to break down B Corporations (usually known by the abbreviation B Corps), companies whose bylaws recognize the orientation of its activity towards the pursuit of interests other than the strictly economic one. These companies, which are part of the private “B movement” promoted by the B Lab foundation, have been certified in terms of social and environmental impact with its own measurement system. Once an introduction to this entrepreneurial phenomenon has been given, the origin, evolution, and expansion of the B Corps in different countries around the world will be outlined. It will also be addressed the process of obtaining this private seal in the different areas in which the B Impact Assessment is divided: governance, workers, community, environment, and customers. Furthermore, the different contractual and corporate obligations necessary to achieve B Corp accreditation will be assessed, focusing on the theories that define the corporate purpose of a company and analyzing the possibility of regulating the achievement of purposes other than economic ones on its bylaws. Finally, due to the obligation imposed by B Lab, B Corps which are certified in a country with benefit corporation legislation enacted, will have to adopt this legal status. This will lead us to make a comparative analysis between B Corp and benefit corporations; concluding this section with a comparison of the different legislations that regulate this figure.