Pros and Cons of B Corporations

B corporations are businesses that meet high standards of verified social and environmental performance. It is a private certificate that is issued to profit-making companies.

To be a B-corporation you must get a certificate from the corporation net. There are public transparency and legal accountability to balance profit and purpose.

Pros and Cons of B Corporations

Pros of B Corporations

  1. They share resources

There are many member resources that the corporations share once they are allowed to form. It allows networking for businesses that are similar and have similar goals in their local communities.

  1. They have many ways to get involved

Many people may come together to support the mission of the business and they may have their tax be reduced. Many corporations qualify because they maintain a good relationships in the environment where they exist.

  1. It is a marketing tool

It is effective marketing in itself as it gives the corporation credibility. They let the community know that they support the mission and they can back up the claims with real evidence.

  1. Public accountability

The corporations are accountable to the members of the public and this makes them the best as the members of the public will be aware of the operations in the organizations.

  1. They attract the right people

As they build their credibility in the local community where they operate, they attract a large number of people to join them.

  1. Community

They involve the members of the community so much that they develop their area hence improving the living standards of the members of the community.

Cons of B Corporations

  1. The high cost of obtaining and maintaining the certificate

The certificate has to take a legal process for it to be issued which may turn out to be expensive. Maintaining the certificate may also be a problem as the corporation is to maintain the standards of performance for it to keep the certificate.

  1. High levels of scrutiny from activists and shareholders

The shareholders may scrutinize the corporation which may, in turn, make the members give up hence not working diligently. Some of them may be hypocritical when assessing the organization.

  1. It is not found everywhere

The b corporations are not found in all states and this may create a challenge informing them where they do not exist. The government may not allow them to form the corporations because they have not been authorized to exist.

  1. No corporate tax benefits

If the corporation is not exempted from paying the tax, then it has to pay tax like any other organization. There are no additional tax benefits associated with these types of statuses.

  1. Accountability may be hectic

Some auditors may term whatever that is being done in the organization as wrong and this may make the organization to be forced to start again which may not be a good thing to the organization.


B corporations are good in the states where they have grown and they have evaluated the organization and found out that it can maintain the state over a long period.

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