I am looking into the distinction between benefit corporations and B corporations to analyze which model is more effective at promoting corporate social responsibility. I am also looking at the lack of regulation and auditing surrounding benefit corporations, and how they could be more effective.
I maintain my belief that benefit corporations have the potential to revolutionize the way that business is conducted. So often corporations focus too heavily on profits and stock price that social and environmental consequences are deemed to be okay. Benefit corporation legislation offers the potential for businesses to be environmentally friendly while operating as a for profit business. If benefit corporation legislation is approved in more states and increases their certification requirements, they could be extremely effective.
This source from Patagonia (so it is a business source) talks about Patagonia’s benefit corporation status and how they are also a certified B corporation. It details the steps that a business must go through to be certified as a b corporation. It seems as though Patagonia has been very successful in its operation as a benefit corporation and they are hoping that this strategy will help their company for years to come.
This article added to my knowledge because it demonstrates an example of a successful b corporation, Patagonia. Clearly, the company believes that being organized as a benefit corporation is very good for their company mission and efforts. If more companies followed this line of thinking, benefit corporations could seem much more appealing to more companies. This source also clarified the b corporation certification process for me. Previously, I thought that a company could be a certified B corporation without being a benefit corporation, but this article suggests that this is not the case. I will further look into this question in my research.
Because this is an article from the Patagonia website, it has the potential to be biased to make the company look better. The facts that it presents, however, seem to be consistent with the information I have found thus far about b corporations and benefit corporations, so I think it is a trustworthy source.