Patagonia Now a B Corporation

So it looks like California has joined the list of states allowing companies to organize as Benefit Corporations to make a total of seven. To be a Benefit Corporation or “B Corporation” means that you legally organize your business as a for-profit that uses the power of business to solve social and environmental problems. This is important because traditional Corporations are bound by law to act in the best interests of the stakeholders. Which means that if your stakeholders think you’re spending too much the environment and charities then the focus of the business could be forced to shift to more “profitable” avenues. By definition B Corporations are committed to showing a certain level of transparency, meet higher legal accountability standards and, build business constituency for public policies that support sustainable business.

Patagonia CEO Yvon Chouinard was one of the first in line in California as his company was active in lobbying for the adoption of this law. It looks like New York may be next on the list as they are slate to start accepting this new business model next month. Other states that recognize B Corporations are Vermont, Virginia, Maryland, New Jersey, and Hawaii (cheeee!!!!)

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