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W W W. M A I N E B I Z . B I Z 61 Fact Book / Doing Business in Maine B U S I N E S S R E S O U R C E S Y ou've heard about B Corporations and you've likely seen other busi- nesses promote themselves as a B Corporation or simply a B Corp. What exactly does the title signify, and can becoming a B Corp benefit your business? What is a B Corp? B Corporation is a certification awarded to businesses that have elected to broaden their mission beyond financial profit to include making a positive impact on society and the environment. e desig- nation is awarded by B Lab, a Berwyn, Pa.-based nonprofit that measures a company's entire social and environ- mental impact. B Corps are for-profit businesses that work to create positive change through the way they operate. It's important to note that B Corp certification is a designation separate and distinct from a benefit corporation. A benefit corporation refers to the legal structure of a corporation under state law, whereas a B Corporation is a certifi- cation issued by a private third-party (B Lab) based on the social and environ- mental impact of the business. Requirements for becoming a B Corp Companies seeking B Corp certification must undertake a legal commitment to making a positive impact on society and the environment and demonstrate this commitment through concrete actions. In addition, the company must adopt standards for transparency and account- ability, which include making B Lab's assessment results available publicly. In order to qualify for certification, the business must score at least an 80/200 on B Lab's B Impact Assessment, which analyzes social and environmental performance. Additional specifics of the process vary based on the size of the business that is requesting certification. The benefits In the simplest terms, B Corps are working to make the world a better place and the certification strengthens a business's brand and reputation by mak- ing that commitment more visible to customers and shareholders. e B Corp designation ranks businesses among organizations that are recognized glob- ally as pillars of social responsibility. Employee benefits and healthy work environments are distinguishing features of socially responsible employers, so it's no surprise that B Corps often report increased worker satisfaction and job performance. When it's time to hire, B Corps are known for attract- ing engaged, qualified candidates with aligning values, which results in higher employee retention rates. Weigh any drawbacks Becoming a B Corp can provide great benefit to your business in terms of aligning with like-minded clientele and employees, but don't forget to consider the very tangible and costly work that goes into earning (and maintaining) the certification. e process of applying is arduous and requires renewal every three years, which ensures integrity of those with the status, but can be taxing for smaller businesses with fewer resources to prepare the materials for review. How to apply When preparing to submit your application to B Lab, be aware that it is a rigorous process requiring advance preparation that can take a year or more. Complete guidelines can be found online at bcorporation.net, but applicants should be prepared for the following steps: Adopt the bylaw changes, policies, and programs required to meet B Corp requirements. Implement those changes and docu- ment the resulting positive impact. Keep good records of supporting documentation and data. Register and complete the B Impact Assessment, which asks questions about your company's practices in the areas of governance, workers, community, the environment, and customers. Compile the application package and submit to B Lab for evaluation. Go through a thorough review and verification process. Remember that re-certification is required every three years to maintain the certification. C h r i stop h e r B ran s on i s a partner at Murray Plumb & Murray and chair of the business and corporate law practice group. He can be reached at cbranson @ mpmlaw.co Earn B Corp certification for your business B Y C H R I S T O P H E R B R A N S O N B Y C H R I S T O P H E R B R A N S O N H OW TO Westbrook | Portland | Scarborough | Bangor | Arundel InfinityCU.com | 207-854-6000 Whatever drives you, Infinity is along for the ride. Applications now being accepted for Leadership Maine and ICL (Institute for Civic Leadership) 2022–2023 classes. APPLY TODAY: mdf.org/leadership-development/application Sure you're a leader... but are you up for the challenge?

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