California Passes Legislation That Recognizes B Corps

By January 28, 2012 No Comments

The State of California has just passed Legislation AB361 recognizing B Corporations.  What is a B Corp?  It’s a new type of corporation that uses the power of business to solve social and environmental problems.  According to BCorporation.net, B Corps: “(1) Meet comprehensive and transparent social and environmental performance standards; (2) Meet higher legal accountability standards, and (3) Build business constituency for public policies that support sustainable business.”

An LA Times Greenspace article states that “incorporating under AB361 allows companies greater access to social impact and venture capital investments; legal protection for directors and officers as they consider non-financial social and environmental goals; and validation of their social and environmental responsibility since their annual benefit report must assess their performance against a third party standard.”  To view the full article, click here.

For more information on B Corporations, contact SAM Partner, Greg Akselrud at (818) 444-4503 or gakselrud@stubbsalderton.com.