We started B Good to fulfill a life-long dream: to contribute to the betterment of society in a long-term sustainable way. There are a lot of good people trying to do a lot of good things, but the non-profit and public sector are perpetually underfunded. For typical non-profits, up to half of the time and resources are spent on fundraising instead of providing services core to their mission. It’s time to think outside of the box and changing the fundamental paradigm:
What if public & social goods can be produced by private enterprises who are committed to doing good and general profit at the same time?
We believe B Good can achieve this. By encouraging and supporting entrepreneurial venture ideas in the form of B Corps.
Helping others and helping yourself is not mutually exclusive. As a former homeless teen who struggled through young adulthood, I realize the power to help others is magnified when I have achieved in my own life. I truly believe that good people deserve to be rewarded for doing good things, and B Corps allow the generation of public and social good to be beneficial for everyone. No one should have to sacrifice personally to dedicate to the public good.
Dafan
Co-Founder
What is a B Corp?
Benefit or “B” corporations and companies are organized under various state laws to provide positive social impact through their chartered mission. As such, such companies are legally required to adhere to their stated social missions, and their stakeholders have a duty to govern accordingly.
Put it simply, profit is not the first and sole motive.
There are currently 36 states with benefit company legal designations, including Delaware and Pennsylvania. If your state does not yet offer the B designation, we encourage you to organize/register your company in a state that does.
How are B Corps Beneficial?
B Corps have a declared socially beneficial mission, they must provide certain defined positive social impact. B Corp’s stakeholders such as Board of Directors and officers have a legal duty to adhere their social missions.
Unlike non-profits, B Corps are allowed to generate and accumulate profits for their owners or shareholders, as long as the socially good mission is also followed. Therefore, it allows certain benefits not afforded by non-profit organizations:
- Receive private sector investments such as venture capital (VC) and private equity funds
- Provide returns for shareholders and investors
- Acquire and accumulate assets for returns
- Access a broader range of financial products for growth
- Does not depend on fundraising and/or grants
How are B Corps Accountable?
B Corps are self-governed according to traditional corporate governance principles. Managers, directors, and officers are fiduciaries to the companies and their missions, and are expected to discharge their duties in upholding the B Corps’ missions. There are some best practices to follow:
- Set up a Board of Directors with independent directors
- Have a diverse and inclusive board with both public and private sector experiences
- Adopt decision-making process which incorporate the B Corp’s mission in any business analysis
- Be transparent and publish company’s financial results and societal impact
- Invite all stakeholders to keep the B Corp accountable in its activities