That’s right a U.S. Based Corporation. Did you know that corporations are LEGALLY beholding to their shareholders to make as much short-term profit as possible? In theory that may be fine, however in practice this can translate into social and/or environmental neglect. But before you get your Birkenstocks in a tangle, there may be some light at the end of the… ehh… boardroom.

Many corporations are run by responsible people working hard to provide a good product or service to humanity while making profits for themselves and their shareholders. However when that corporation wants to make decisions that responsibly account for their impact on people and the planet, things can get ugly.

In short, we have built an economic structure that is designed for one thing, economic growth at any cost.

“If the rules of the game are wrong then you’ve got to change the rules,” says Jay Coen Gilbert who co-founded and sold AND 1, a $250M basketball footwear and apparel company.

That’s easy for Jay to say. Jay Coen Gilbert, Bart Houlahan, and Andrew Kassoy, are amongst a group of highly regarded business leaders and social reformers who have been working hard on plan B.

Plan B: The B Corporation The B Corporation was unveiled last weekend at the BALLE Conference on the University of California, Berkeley campus to an enthusiastic but wary crowd.

After limited remarks from Jay Coen Gilbert an impressive number of businesses told us why they were B-Corporation Founding members. Some of these reputable companies include Seventh Generation, White Dog Café, Method, Comet Skateboards, Pura Vida Coffee, and many more.

The crowd comprised of authors, thought leaders, and socially responsible business pioneers seemed to be waiting for the other wingtip to drop. The follow up Q&A session was led hotly with, “Ok. We’ve heard the testimonials but what the hell is it and how does it work?” Like I said, enthusiastic but wary.

From what I understand from Jay Coen Gilbert and the website, the B Corporation is a new business group working towards a new corporate structure who’s services include branding, certification, and social entrepreneur mob boss. Mob boss in a good way, as far as I can tell.

What are the benefits to a participating company?

1. One collective brand/certification for environmental and social responsibility.

2. A legal commitment to your values whether your board, stakeholderes, or even company ownership change.

3. A network of likeminded businesses wiht whom to work, share knowledge & resources, and to leverage corporate law reform.

4. The B-Corporation (and powerful friends) will market the hell out of this concept.

What are the benefits to people and the planet? Perhaps the B-Corp will be a powerful advocate for a serious “rule change” within the corporate structure (as Jay Coen Gilbert puts it). And perhaps, the B-Corp stamp of approval will be an easy way to determine socially responsible businesses from just good marketing (as advertised on the B-Corp site).

Why perhaps? Because the value of B Corporation hinges on the actual criteria “socially just” companies are judged upon, the transparency of the non-profit entity B-Corporation, and the basic integrity of the process.

What are the benefits to the Organizers? If this goes the way Jay and other hope it will, the B – Corporation will be at the epicenter of all socially responsible businesses, controlling club membership, and taking a percentage of each company’s profits (albeit small).

Yeah.

If you’re going to change the rules, I guess you may as well change them in your favor.

And that is precisely what a social entrepreneur (if successful) does. S/he figures out a way to serve the community while making it profitable.

Brilliant.

Take a look and decide what you think. I’d love to hear your thoughts, as I’ve only begun my research.

I do have several unanswered questions.

1. On what criteria are B-Corp’s concepts of environmental and social responsibility based?

2. How do you enforce these values with businesses to insure the talk is walked?

3. And, finally… who keeps B-Corp honest?

Once these questions are answered to my satisfaction… The FN Group will consider asking the B Corporation to be our social responsibility mob boss… that is, if they’ll take us after this shifty blog entry.

Much respect,

Papa Ganda