A public benefit corporation (PBC) is a relatively new legal entity that has emerged in response to the increasing demand for corporations to prioritize social and environmental goods. Public benefit corporations are similar to traditional corporations in many ways, but with some key differences. It’s important first to define what a public benefit corporation is.
Also known as a B Corp, a public benefit corporation is a for-profit corporation that has made a legally binding commitment to conduct its business activities in a socially and environmentally conscious way. This means that in addition to maximizing shareholder value, public benefit corporations have specific goals related to positively impacting society and the environment. The advantages of becoming a public benefit corporation are many, and they can help drive a positive impact on the world while also benefiting your business.
This blog post will explore some of these key advantages,d or you can find more about “what is a public benefit corporation” here.
It is a Credible Move
Becoming a public benefit corporation ultimately affirms your company’s mission to create social and environmental change. Not only does it position you with customers, employees, and other stakeholders as an organization that prioritizes philanthropy over profit, but it unites all parties around your long-term vision for impact. By taking this step towards corporate responsibility, you are sending a loud message to the world: Your business strives not just for success –– but significance too.
Positive SEO Benefits
Search engine optimization, better known as SEO, is the process of optimizing a website to maximize online visibility and increase its chances of ranking higher in search engine result pages (SERPs). As socially-conscious organizations, public benefit corporations generally receive an added boost in their SERP rankings.
This suggests that a public benefit corporation will be more likely to appear at the top of search engine results when someone searches for an organization dedicated to social and ecological responsibility.
It Sends an Automatic Message to Your Community
Becoming a public benefit corporation immediately sends a message to your employees, customers, and community that your business is committed to creating a positive impact beyond just making a profit. This move can help motivate your employees, attract new customers, and generate goodwill within your community. A public benefit corporation can become a beacon of inspiration for everyone who wants to work with or for a company that drives positive change.
A Commitment To How You Run Your Business
Public benefit corporations must consider the impact of their business activities on multiple stakeholders, including employees, communities, and the environment. This means their corporate structure and governance are designed to prioritize social and environmental good alongside profit. Moreover, this commitment is legally binding and enforceable, meaning that shareholders can hold the company accountable for its stated goals.
Advantages of a Public Benefit Corporation: In Conclusion
Joining the public benefit corporate ranks is a smart move for any company that seeks to be perceived as a socially and environmentally conscious business. As these types of corporations become more ubiquitous in the world of commerce, they offer an increased opportunity to create economic value and positive change in society and our planet.
Whether you’re at the startup stage or already firmly established within your sector, becoming part of this movement through obtaining B-Corp status will serve as a strong signal demonstrating your uncompromising commitment to generating beneficial impacts on people’s lives and nurturing our environment.