In this 2009 Sustainable Brands presentation, we learn about the power that "B's" in B Corporations. What they are, why every business should gear up to become one, and how they are set on shaping the future of new enterprise and public policies.

1. The B Corporation
A New Kind of Company
For a New Sector of the
Economy
The Certified B Corporation

2. Quick Background
B Lab is a nonprofit started by 3 businesspeople with successful 15 year
careers as Entrepreneurs, Operators, Investors
MSD Capital, L.P.
$250 MM Brand $13B Private Equity

3. What is a B Corporation?
The B Corporation is a new kind of company which uses the power of
business to solve social and environmental problems
- Meets higher standards of social and environmental
performance, accountability, and transparency
- Amplifies voice for a diverse marketplace
through the power of the unifying B Corporation brand

4. B Corporation – Performance Standards
B Ratings System
• Tool for impact assessment & improvement
– Comprehensive, transparent, and comparable
– Dynamic
– Independent governance (Standards Board)
• Not just for certification (i.e. 4,000+ registered users)
• Version 2.0, including industry addendums, in beta testing

5. B Corporation – Legal Standards
B Corporation Legal Framework
• Amends Articles to redefine ‘best interests’ to include
consideration of the impact of decisions not only on shareholders, but
also stakeholders
• Benefits
- protection for Directors to consider non-financial interests
- accountability to shareholders to uphold new definition
- survives new management, capital and ownership
- no additional liability to non-shareholders
• Developed by Jones Day, Linklaters, and Drinker Biddle to work within
existing corporate law

6. Why B Corps Matter
Standards provide leverage to move markets
Give Me a Place to Stand
And I Will Move the Earth

7. Why B Corps Matter - Accountability
Expand corporate accountability through new legal framework
20th Century 21st Century
Shareholder capitalism Stakeholder capitalism
Maximize Create
shareholder value social and shareholder value
exclusively simultaneously

8. Why B Corps Matter - Impact
Drive social impact through third party standards
Consumers Certified sustainable businesses
Investors Emerging asset class: Impact Investments
Policymakers Sustainable procurement/tax incentives
Companies Sustainable supply chains

9. Significant Momentum - Companies
Companies Diverse and growing community of leaders
Financial Services Consumer Products Business Services Outside U.S.

10. Significant Momentum - Marketplace
Marketplace emerging around standards
Companies Standards Partners
195 B Corps, 31 industries Salesforce, BALLE, BASE,
$1B revs, $6B assets WorldofGood/Ebay
Standards
Policymakers Media
State, Local, Federal PR + GOOD Business, Sust Ind, Care2
new corp form + incentives
Investors Due diligence, investment preferences,
social stock exchanges, GIIRS

11. Historic Opportunity
To create social impact through business and transform
corporate accountability
- Chorus of prominent voices
- Gates, Creative Capitalism
- Yunus, Social Business
- Blood&Gore, Friedman, Sustainable Economy
- Financial crisis
-

12. Seizing the Opportunity
B Lab builds infrastructure; B Corps define a marketplace.
Today Leading companies
3-5 Years Vibrant marketplace
In a generation New sector of the economy

13. Why become a B Corporation?
Influence public policy and capital markets
• Create a new corporate form
• Establish tax and procurement preferences
• Drive capital from SRI to Impact Investing
Support your business
• Save money ($600k in annual recurring savings)
• Maintain mission post capital raise, liquidity event, or succession
• Differentiate through third party certification
• Be in the company of recognized leaders

14. Thank you
‘What the outstanding person does, other will try to do.
The example he sets, will be followed by the whole world.’
- Gita