A benefit corporation is a type of for-profit corporate entity that is required to consider the impact of its decisions on its stakeholders, which can include employees, customers, suppliers, the community, and the environment, in addition to its shareholders. Benefit corporations are also known as "B Corps." The purpose of a benefit corporation is to create a positive impact on society and the environment, and to balance profit and purpose in decision-making.
Benefit corporations are a relatively new type of business structure that was developed in response to the increasing demand for businesses to be more socially and environmentally responsible. They are recognized in a growing number of states in the United States and in other countries around the world.
To become a benefit corporation, a company must meet certain legal requirements, such as adopting a corporate purpose that includes a commitment to creating a material positive impact on society and the environment, and reporting annually on its performance using standardized metrics. Benefit corporations are required to consider the impact of their decisions on all of their stakeholders, not just their shareholders, and to operate in a transparent and accountable manner.