July 9th, 2009

B Corp’s Legal “DNA” & Rating System

I enjoyed an inspiring presentation from Bart Houlahan, co-founder of B Corp, right here in the Hudson Valley yesterday, and speaking with him afterwards.

As a former lawyer, I love B Corp’s legal “DNA” approach and am impressed (like so many others, apparently) with the rating system B Corp’s developed. While I’d known about B Corp for a while, it was good to get the details from the horse’s mouth.

B Corp has over 4,000 registered users of its free online ratings system, including investors assessing potential private equity investments, and businesses assessing suppliers and even customers, in addition to those evaluating their own companies and membership in B Corp. There’s now a Version 2.0 in progress, including industry addendums, in beta testing.

The organization is also working with state governments on new forms of incorporating that better reflect the rise of triple bottom line for-profit companies. These new forms will try to encourage this new type of business through certain benefits similar to what only nonprofits have so far enjoyed. States with such alternative corporate forms permitted or in progress include CA, CO, NY, MN and VT.

I haven’t considered a certification program yet for a number of reasons, but will now be doing so. I’m launching a new company with a partner, in September, focused on strategic sustainability/CSR communications for small and mid-size enterprises that will help clients develop systemic sustainability programs (rather than piece meal) and better engage stakeholders through social media and other collaboration tools, among other services complimentary to SRB’s. This fits in well with a number of things on which B Corp and its certified companies and partners are working.