Connection between the B Corp Legal Requirement and the PSG 1 Requirement
“The intention of these legal changes is to ensure that all decisions at the company, whether it is a decision about taxes, wages, factory location, or another decision, include an analysis of how the decision would impact the company’s stakeholders, and that there is accountability for the act under consideration. This legal obligation is implemented in practice through the seven Impact Topics.”
Article
The Legal Requirement and the Purpose and Stakeholder Governance standard section 1 requirement mutually support each other. Where the company has established a specific purpose statement in its corporate charter or other organizational document to fulfill the Legal Requirement, and this purpose statement meets the compliance criteria of PSG1, the company will comply with the PSG1 requirement with one and the same purpose statement. This article includes a comparison chart to help B Corps align the PSG Impact Topic and the B Corp Legal Requirement.
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B Lab GlobalTopics
Impact Topics, Purpose & Stakeholder Governance