Corporate responsibility is a serious matter. When a company gives back to the community, everyone benefits. It creates goodwill towards the company and boosts the local economy. When a business supports a cause it promotes that cause and the company becomes part of solving a problem, beyond what it does as a business. These facts have given rise to B-corps or benefit corporations. While not available in all states, B-corps are promoted as a form of corporation that makes corporate responsibility a priority. The fact is no one benefits when a company chooses this form of incorporation.
In reality, a B-corp has no more ability to do good than an S-Corp, C-Corp, LLC or sole proprietorship. Not only doesn’t the company get any benefits from being a B-corp, it has higher overhead due to increased paperwork and fees associated with being a B-corp. This takes away from the resources available to the company to do good works. It also diverts manpower and money away from its core business, which can cause it to go out of business. On top of this, there is a difference between a benefit corporation and a certified B-corp. As a certified B-corp, a company pays additional fees.
Every successful business should be a part of their community and partner with non-profits. It benefits all involved including the business, its owners, its customers, and its employees on top of the benefits of the project itself. To do the most good, take the resources that would have been wasted on B-corp paperwork and fees and put them to good use. A B-corp says they do good. A good company does good.
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