David Street, partner at Lerners LLP, describes how to use the power of this new business model to solve social and environmental problems. Certified "B" Corps: How to Do Good and Make Money at the Same Time.

Certified "B" Corporations or "B" Corps. -- hybrid corporations which contain elements of both for-profit corporations and not-for-profit corporations which must have an entrenched social mission, institutionalize stakeholder interests, as well as comprehensive standards of social and environmental performance, transparency and accountability. Developed and administered by B Lab. Certified "B" Corporation is a certification created by B Lab. Applicant must take and pass the "B" impact rating system, adopt the "B" Corporation legal framework to embed its social mission and sign a term sheet that makes certification official. Certified "B" corporations have access to a portfolio of services and support from B Lab which benefit corporations do not.

B Lab has partnered with MaRS Discovery District in Toronto to support to "B" Corp. community in Canada. MaRS reports that there are 105 "B" Corps. in Canada in seven provinces. B Lab reports that worldwide there are 990 "B" Corps. in 32 countries. Industry Canada considering amending the Canada Business Corporations Act to permit the incorporation of hybrid entities with both for-profit and not-for-profit objectives. Ontario considering legislation to enable the creation of new hybrid corporations dedicated to a social purpose and are required to reinvest a portion of the profits into that social purpose.

Hybrid entities are a new and exciting development that will appeal to socially minded entrepreneurs.

www.lerners.ca

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.