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hold slowly—not unlike how LLC status evolved—across the United States. Where they are recognized, they are taxed like other corporations (they are not nonprofi ts, after all), but a few jurisdictions provide modest breaks. Registering as a B Corp (in states that recognize them) creates a legal framework for a business to remain true to its social goals. A regular corporation's highest responsibility is to maximize shareholder profi ts, while a B corporation has a dual focus, legally, where the owners/executives can make a profi t, but offset that priority with the goal of benefi ting soci- ety. If the state where you do business doesn't yet recognize B corporations, you can still create company policies and bylaws for adhering to B Corp requirements. Advantages to becoming a certified B Corp or legal benefit corporation Both B Corp certifi cation and B corporation legal status offer specifi c advantages. First, they expand the duties of compa- ny leaders, requiring them to prioritize positive social and environmental impact, in addition to profi ts, when making decisions for the company. Both designations also come with an opportunity to cut through the marketing chatter and earn support from custom- ers, to differentiate from competitors, and to make a difference in the process. When structured as a regular corporation or LLC, it can be hard to communicate social or environmental missions, but as B Corps become more known, their presence in the marketplace is becoming a shorthand way of stating company ethics. Certified B Corps are also held accountable to operate transparently. They must file annual reports detailing their positive social or environ- mental impact, reapply for certification every two years, and submit to random on-site reviews. This fosters more transparent business operations and helps prevent greenwashing—where businesses claim to be social enterprises to increase profits or create other self-serving benefits. Annual certifi cation fees aren't terribly expensive. For companies with annual sales of $499,000 or less, the yearly fee is $500. It's $1,000 for companies that make $500,000 to $1.9 million, $1,500 for $2 million to $4.9 million entities, and so on, currently capping out at $50,000 for $1-billion-plus companies. If you're just starting out, the certifi cation cost can feel like "one more bill I don't need right now," and that's OK. But if you have real social and environmental goals, consider trying to become a B Corp after a few years in business. You might be surprised at how it affects your entire operation. James Perry is cofounder of premade-meal company COOK, which certifi ed as a B Corp in 2013. In April, he wrote on Pioneer Post that, "It has transformed our company. While we were always trying to do 'good business,' the power of changing the directors' duties has been seismic. It has changed the business strategy." Some of the changes at COOK include profit sharing for all employees, employing incarcerated individuals on day of release in the hope of giving them jobs after their sentences are up, part- nering with a homeless charity to feed 52 people per day, working with charities to employ disadvantaged young people, and oper- ating a one-feeds-two program over Christmas, which resulted in 200,000 free school meals for children in Malawi to promote school attendance. Behind-the-scenes changes have included reducing carbon footprint, sustainable sourcing, and prioritizing gender and ethnic balance. But James insists the most powerful change has been giving his 650 employees a platform to affect the change they want to see in the world. All of the ideas mentioned above came from employees, not the board. "People's engagement is transformed and their creativity unlocked because the business is being run for this purpose." James is also quick to point out that COOK only scores 80/200 on the B Impact Assessment. So don't beat yourself up if you're not a high-ranking B Corp. What matters is working on it, and being inspired by your peers. Angela of Mugshots notes that you still have to prioritize the bottom line. "While some [green initiatives reduce our costs], like trash haulers charging less for recycling than for trash, other things are going to be more expensive. We do pay a small extra monthly fee for clean energy. I'd recommend making changes a little at a time. We started at 10 percent wind energy and worked our way up." And that is where the best kind of snowball effect can occur. In the words of B Lab, B Corps are inspiring other companies to compete not only to be best in the world, but best for the world. ILLUSTRATION BY JACK POLLOCK "When more ethical practices are third-party certified… my bet is a lot of Americans would try to do it." 75 www.baristamagazine.com