What makes a business “good?” Many would say exceptional customer service and a superior value, or giving back to the community and being environmentally conscious. Those are great attributes for a company to have, but are commonly touted and often difficult to determine the depth and relevance of those claims. Soon consumers will have a more tangible method of determining the truly “good” companies from the standard. You may have noticed the increase in national coverage of Benefit Corporations. Locally, the Portland Business Journal has been covering efforts to get a hearing for legislation supporting the legal formation of Benefit Corporations in Oregon. So what are they? Benefit Corporations (or B Corps), are a new type of corporation. Unlike a traditional corporation that gives priority to financial profit, B Corps actually use the business to address social and environmental issues.
A traditional corporation will typically focus on increasing shareholder profits, sometimes without regard to how that affects other stakeholders and the community. This can lead to unlivable wages for workers or a lack of regard for the environmental impact that the company may be causing, as those costs can otherwise provide profit back to the shareholders. Conversely, B Corps are committed to taking social and environmental interests into account when making business decisions.
According to B Lab, a nonprofit organization that certifies B Corporations, a certified B Corps must meet “rigorous and independent standards of social and environmental performance, accountability, and transparency.” Essentially, when a company becomes certified as a B Corps, that company’s practices have been vetted by a third party, similar to a product being certified as “organic” or “fair trade.”
Public relations and community outreach opportunities for companies with a B Corps status are endless and some companies, like Seventh Generation, have already begun touting their status. Consumers like to spend their money at places that are up front with the contributions they make to the community and if publicizing the new B Corps status is done effectively, it will no doubt drive sales and increase traffic.
LT Public Relations is eager to see which local companies will make the transition. In a place as socially and environmentally conscious as Oregon, we could soon be seeing an influx of the B Corp logo. This new status is truly changing the rules and creating a new model for how businesses can be different. We are standing by to see how the early adopters will use public relations to tell their B Corps story.







