{"id":8970,"date":"2020-02-26T15:18:13","date_gmt":"2020-02-26T14:18:13","guid":{"rendered":"https:\/\/avs-advisors.com\/?p=8970"},"modified":"2021-09-28T17:55:16","modified_gmt":"2021-09-28T15:55:16","slug":"the-benefit-corporation","status":"publish","type":"post","link":"https:\/\/avs-advisors.com\/es\/the-benefit-corporation\/","title":{"rendered":"The Benefit Corporation"},"content":{"rendered":"\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-8vgb1o-6917258f33da21f07e60183664e54de0\">\n.flex_column.av-8vgb1o-6917258f33da21f07e60183664e54de0{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-8vgb1o-6917258f33da21f07e60183664e54de0 av_one_fifth  avia-builder-el-0  el_before_av_three_fifth  avia-builder-el-first  first flex_column_div av-zero-column-padding '     ><style type=\"text\/css\" 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srcset=\"https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/06\/TTA_2016-01_Definition_of_Benefit_Corporation_150x150.jpg 150w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/06\/TTA_2016-01_Definition_of_Benefit_Corporation_150x150-80x80.jpg 80w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/06\/TTA_2016-01_Definition_of_Benefit_Corporation_150x150-36x36.jpg 36w, https:\/\/avs-advisors.com\/wp-content\/uploads\/2016\/06\/TTA_2016-01_Definition_of_Benefit_Corporation_150x150-120x120.jpg 120w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/div><\/div><\/div><\/div>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63\">\n.flex_column.av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-7ldcto-9f1016c7c66bb4ad71a854dcaae0ea63 av_three_fifth  avia-builder-el-2  el_after_av_one_fifth  el_before_av_one_fifth  flex_column_div av-zero-column-padding '     ><p>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-9fb3a78dd937c7485633fefe69d4649b\">\n#top .av-special-heading.av-av_heading-9fb3a78dd937c7485633fefe69d4649b{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-9fb3a78dd937c7485633fefe69d4649b .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-9fb3a78dd937c7485633fefe69d4649b .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-9fb3a78dd937c7485633fefe69d4649b av-special-heading-h1 blockquote modern-quote  avia-builder-el-3  el_before_av_heading  avia-builder-el-first '><h1 class='av-special-heading-tag'  itemprop=\"headline\"  >The Benefit Corporation<\/h1><div class='av-subheading av-subheading_below'><p>Building a culture of purpose as the business model of the future?<\/p>\n<\/div><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_heading-1e0f456e31a43a44f9662179e5bd205c\">\n#top .av-special-heading.av-av_heading-1e0f456e31a43a44f9662179e5bd205c{\npadding-bottom:10px;\n}\nbody .av-special-heading.av-av_heading-1e0f456e31a43a44f9662179e5bd205c .av-special-heading-tag .heading-char{\nfont-size:25px;\n}\n.av-special-heading.av-av_heading-1e0f456e31a43a44f9662179e5bd205c .av-subheading{\nfont-size:15px;\n}\n<\/style>\n<div  class='av-special-heading av-av_heading-1e0f456e31a43a44f9662179e5bd205c av-special-heading-h5 blockquote modern-quote  avia-builder-el-4  el_after_av_heading  el_before_av_font_icon '><h5 class='av-special-heading-tag'  itemprop=\"headline\"  >by Andreas von Specht and Dr. Christian B\u00fchring-Uhle<\/h5><div class=\"special-heading-border\"><div class=\"special-heading-inner-border\"><\/div><\/div><\/div><br \/>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a\">\n.av_font_icon.av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a .av-icon-char{\nfont-size:40px;\nline-height:40px;\n}\n<\/style>\n<span  class='av_font_icon av-k61yt6pc-4b3d0b31c33d1ba5940ad0ea1382b06a avia_animate_when_visible av-icon-style- avia-icon-pos-left av-no-color avia-icon-animate'><span class='av-icon-char' aria-hidden='true' data-av_icon='\ue819' data-av_iconfont='entypo-fontello' ><\/span><\/span><br \/>\n<section  class='av_textblock_section av-k61ywyoh-aa80164a0bbcfe1a68ac25d8daf20471'  itemscope=\"itemscope\" itemtype=\"https:\/\/schema.org\/BlogPosting\" itemprop=\"blogPost\" ><div class='avia_textblock'  itemprop=\"text\" ><p>Traditionally, a business either operates \u201cfor-profit\u201d or \u201cnot-for-profit\u201d. The majority of businesses are, of course, \u201cfor-profit\u201d, existing to generate revenue to benefit a sole proprietor, or a larger group of members or shareholders. By contrast, a \u201cnot-for-profit\u201d organisation generally exists for the primary purpose of serving a \u201cgreater good\u201d or social purpose other than profit. Non-profit organisations may certainly earn money and create profits; however, this money must always be put back into the organisation itself and used to benefit the mission for which it was formed. In other words, no money is distributed to owners or shareholders. Benefit Corporations, simply put, do not see a contradiction between \u201cdoing well\u201d and \u201cdoing good\u201d: they pursue the dual purpose of making money for their owners, and making the world a better place. They combine the \u201cgreater good\u201d and social purpose of a non-profit organisation with the freedom to create and distribute profit among owners and shareholders.<\/p>\n<p>Launched in the United States, Benefit Corporations fall into two main categories: legal \u201cbenefit corporations\u201d which face legislative requirements to generate both shareholder and social benefit, and \u201cCertified B Corporations\u201d which are not legally bound but are certified by the not-for-profit organisation \u201cB Lab\u201d. Both types of entities are referred to among proponents as \u201cB Corps\u201d.<\/p>\n<p>B Corps are for-profit companies that pledge to achieve social goals as well as business ones. Their social and environmental performance must be regularly certified by B Lab. B-Lab was set up in 2006 with three goals. The first goal was to create an externally valid mechanism for accrediting. That somebody could look at a company and with a relatively simple grasp could say: \u201cthat is a good business.\u201d The second goal was to change legislation. In most countries in the world, including some states of the US, it is not even legal to have the governance of an organisation measured by purpose as well as profit. If you are a Director of a company and you make a decision that is not in the immediate financial interests of the shareholders, you could theoretically be sued. So changing legislation to allow purpose to be imbedded into the governance of organisations was critical. In the past six years, 27 states have passed laws allowing companies to incorporate themselves as \u201cbenefit corporations\u201d. And the third objective was to create a kind of community, so that companies who are interested in more than just making money can learn from each other and do new things.<\/p>\n<p>The commitments that these B Corps are making aren\u2019t just rhetorical. Whereas a regular business can abandon altruistic policies when times get tough, a Benefit Corporation cannot. Shareholders can sue its directors for not carrying out the company\u2019s social mission, just as they can sue directors of traditional companies for violating their fiduciary duty.<\/p>\n<p><strong>Why would any company tie its hands this way?<\/strong><\/p>\n<p>Becoming a B Corp raises the reputational cost of abandoning declared social goals. It\u2019s what some economists might call a \u201ccommitment device\u201d \u2014 a way of insuring that you will live up to your original promises. Being a B Corp also protects a company against pressure from investors. Since the 1970s, the dominant ideology in the corporate world has been that a company\u2019s fundamental purpose is to boost investor returns: as Milton Friedman put it, increased profits are the \u201conly social responsibility of business\u201d.<\/p>\n<p>Many, if not most CEOs, still feel huge pressure to maximize shareholder value. At a B Corp, though, shareholders are just one constituency. In today\u2019s fiercely competitive business environment, one might assume that a company that thinks altruistically is doomed to failure. To a die-hard free-marketeer, a B Corp is just a way to waste shareholder money on \u201cfeel-good\u201d projects. However, sustainability and good corporate citizenship are issues that are routinely covered by the media, and businesses are very aware of their reputation on these issues. Businesses are also increasingly aware that their reputation can hugely impact their ability to compete for talent and engage consumers, both as loyal customers and also as promoters for the brand. Having a social mission can hence offer distinct advantages. It\u2019s an important way for a company to attract and retain top talents. Research data shows that talents \u2013 especially younger ones, belonging to the millennium generation \u2013 want to work for socially conscious companies, and will even accept lower compensation in exchange for a greater sense of purpose. Until now, such people often work for not-for-profits, but B Corps may soon become a more attractive option.<\/p>\n<p><strong>Why does a culture of purpose matter?<\/strong><\/p>\n<p>Just watch the world around you. We are in the middle of another industrial revolution \u2013 but this one is happening so much faster than the original, which took almost a hundred years. The unbelievable pace with which markets, industries and business models are changing is stunning and unprecedented. In parallel, the political landscape is changing rapidly \u2013 causing a great deal of uncertainty and even fear. Systems of transportation, energy and communication are in the middle of this third revolution. Little will remain as we knew it in the 70 years before. And more and more, it becomes a common belief \u2013 even in the US, China or India \u2013 that we will have to treat our planet with more care. At the UN conference on climate change in Paris last November, 196 countries agreed to set a goal of limiting global warming to less than two degrees Celsius compared to pre-industrial levels. The agreement calls for \u201czero net anthropogenic greenhouse gas emissions\u201d to be reached during the second half of the 21<sup>st<\/sup> century. Yet this will not be nearly enough in the long run; it doesn\u2019t suffice that only country leaders sign protocols and treaties. A huge challenge also lies ahead for company leaders around the globe to contribute to \u201csaving the world\u201d: they will need to build a culture of purpose.<\/p>\n<p><strong>Purpose predicts success<\/strong><\/p>\n<p>The need to build a purposeful corporate culture, however, is not exclusively based on concerns for the environment and our world. Research clearly indicates that purpose oriented employees are 50% more likely to become leaders in their organisations, consider that their work makes an impact, and believe that they grow both personally and professionally. 79% of purpose-oriented workers plan to stay with their current employers longer than two years compared to 69% of their peers. They are almost twice as likely to recommend their employers. US research revealed that less than 1\/3 of the U.S. workforce is purpose-oriented. It also revealed that women are significantly more likely to be purpose-oriented than men.<\/p>\n<p>Non-purpose oriented employees by contrast tend to leave their job sooner, to gain less meaning from their work and to lack deep relationships at work. Purpose orientation of employees results in \u201chigher net promoters of brand\u201d, \u201chigher levels of meaning\u201d, \u201chigher leadership potential\u201d and \u201chigher retention\u201d. By building a culture of purpose, organisations will likely get into a much stronger position to attract the best and smartest talents around the world!<\/p>\n<\/div><\/section><br \/>\n<div  class='avia-buttonrow-wrap av-k61ze9w6-f76018f3fb98b17a0aff0b6ac95eb808 avia-buttonrow-right  avia-builder-el-7  el_after_av_textblock  avia-builder-el-last '>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-da2fef32b6925ac6e1df2d61bc60ec1c\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-da2fef32b6925ac6e1df2d61bc60ec1c{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/es\/trustedadvisor'  class='avia-button av-av_buttonrow_item-da2fef32b6925ac6e1df2d61bc60ec1c avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color'  ><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue830' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >back<\/span><\/a>\n\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-av_buttonrow_item-d68731acbf74b51e8bbcaa978da10f7c\">\n#top #wrap_all .avia-button.av-av_buttonrow_item-d68731acbf74b51e8bbcaa978da10f7c{\nmargin-bottom:10px;\nmargin-left:10px;\n}\n<\/style>\n<a href='https:\/\/avs-advisors.com\/wp-content\/uploads\/2020\/03\/TTA_2016_01_Benefit-Corporation_EN.pdf' class='avia-button av-av_buttonrow_item-d68731acbf74b51e8bbcaa978da10f7c avia-icon_select-yes-left-icon avia-size-small avia-color-theme-color' target=\"_blank\" rel=\"noopener noreferrer\"><span class='avia_button_icon avia_button_icon_left ' aria-hidden='true' data-av_icon='\ue82d' data-av_iconfont='entypo-fontello'><\/span><span class='avia_iconbox_title' >Download PDF<\/span><\/a>\n<\/div><\/p><\/div>\n<style type=\"text\/css\" data-created_by=\"avia_inline_auto\" id=\"style-css-av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c\">\n.flex_column.av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c{\n-webkit-border-radius:0px 0px 0px 0px;\n-moz-border-radius:0px 0px 0px 0px;\nborder-radius:0px 0px 0px 0px;\npadding:0px 0px 0px 0px;\n}\n<\/style>\n<div class='flex_column av-2a6n1o-6aeba8d515cc66995d2ad0cbef497f1c av_one_fifth  avia-builder-el-8  el_after_av_three_fifth  avia-builder-el-last  flex_column_div av-zero-column-padding '     ><\/div><\/p>\n","protected":false},"excerpt":{"rendered":"","protected":false},"author":5,"featured_media":5615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[54],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.6 - 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