The Legal Requirement for Certified B Corporations
“B Lab considers shareholder primacy to be an obstacle to creating long-term value for all stakeholders, including the owners and shareholders themselves. We believe overturning shareholder primacy is integral to making our economy work for everyone.”
Article
Certified B Corporations are legally required to consider the impact of their decisions on all of their stakeholders – a model known as stakeholder governance. The B Corp legal framework allows companies to protect their mission and ensures that the company will continue to practice stakeholder governance even after capital raises and leadership changes. The legal framework also provides more flexibility when evaluating potential sale and liquidity options.
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B Lab GlobalTopics
Certification Basics, Foundation Requirements, Impact Topics
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