March 2012 Best Practice Network Webinar series, presented by VolunteerMatch Session Description: Being a competitive business today isn’t just about a positive bottom line – it’s about a positive triple bottom line, where people, planet and profit are all accounted for in measuring business success. Good social and environmental practices help contribute to consumer loyalty, employee recruitment and retention, and stronger profits. It’s no longer enough to be the best in the world; companies must also prove they are the best FOR the world. This shift in consumer, employee and market factors has created a movement of companies embedding social and environmental missions into the DNA of the organization. At the helm of this movement is B Lab, a nonprofit organization dedicated to using the power of business to solve social and environmental problems. B Lab is building a business community of certified B Corporations and the market infrastructure necessary to create a new sector of the economy that will redefine success in business. Join VolunteerMatch Solutions for a conversation with B Lab’s Director of Services, Vale Jokisch, who will share more information about what it takes to become a B Corporation and how these organizations are transforming the business sector. Participants will learn the key trends impacting the shift to more responsible businesses, share best practices of B Corporations and tips for how to get started. About Our Guest Speaker: Vale is the Director of Services at B Lab, a non-profit organization dedicated to using the power of business to address the world’s most pressing challenges. Vale works to build a community of Certified B Corporations, giving certified companies the tools to improve their financial performance, deepen their social and environmental impact, and drive the movement to create a new sector of the economy that will redefine success in business. Prior to joining B Lab, Vale was the Deputy Director of Empowerment Group, a non-profit microenterprise development organization. She also has experience in law and as a full-time musician. Vale holds a B.A. in Economics and Political Science from Swarthmore College and an MBA with a concentration in Social Entrepreneurship from The Fuqua School of Business at Duke University.

1. B Corporations:
Building Business to be the Best FOR the World
March 27, 2012
Vale Jokisch
Director of Services, B Lab
Confidential and Proprietary 1

2. How To Ask Questions
Type questions into the box on the right
side of the your screen
Submit via Twitter to @VM_Solutions
using “#VMbpn”
We will pose questions at the end of the
presentation
A copy of the sides will be circulated
after the event
Confidential and Proprietary 2

3. Certified B Corporations
A New Kind of Company
For a New Sector of the Economy
A webinar in collaboration with
B Corporations - Public Policy - Impact Investing

4. The Trend
• 60 million conscious consumers
• $2.7 trillion available from socially responsible investors
• 100,000+ social entrepreneurs and sustainable businesses
The Problem
• Current corporate law works against sustainability and social impact
• No standards to distinguish good companies from good marketing
The Opportunity
20th Century 21st Century
Shareholder corporation Stakeholder Corporations
(maximizes shareholder value) (creates social and shareholder value)
The Need
Standards to drive support
B Corporations - Public Policy - Impact Investing

5. The Entrepreneur is the engine of change
B Lab is nonprofit organization that supports the world’s leading
entrepreneurs using business to solve social and environmental problems
Initiative 1:
Shine a light on the
Entrepreneur
Certified B Corporations
Initiative 2: Initiative 3:
Remove legal impediments Drive capital to the
for the Entrepreneur Entrepreneur
Public Policies Impact Investments
B Corporations - Public Policy - Impact Investing

6. Building a movement (Initiative 1)
Leading this movement are 500+ B Corps across 60 industries and 40 states
B Corporations - Public Policy - Impact Investing

7. What is a B Corporation?
Certified B Corporations use the power of business to solve social and
environmental problems
Unlike traditional businesses, B Corps must:
• Meet comprehensive and transparent social and environmental
performance standards
• Meet higher legal accountability standards
• Build business constituency for public policies
that support sustainable business
B Corporations - Public Policy - Impact Investing

8. Why do B Corps matter?
Certified B Corporations are leading a movement to redefine success in
business and build a more inclusive, resilient and sustainable economy.
B Corps want to influence the market
beyond the scope of their individual
businesses.
These entrepreneurs are striving to be,
not just the best in the world, but the
best for the world.
B Corporations - Public Policy - Impact Investing

9. Who are the B Corps?
B Corps are large products retailers and manufacturers…
• Ventura, CA
• 1300 Employees
• Apparel and Outdoor Wear Company
 Pioneer in organic and PCR textiles • Grand Rapids, MI
 Founded 1% for the Planet • 1000 Employees
 Leader in supply chain transparency • Sustainable manufacturing at scale
 Quality jobs in depressed economy
 Moving into renewables and BoP
 Vision for regional sustainable economic
development
B Corporations - Public Policy - Impact Investing

10. Who are the B Corps?
B Corps are social and environmentally focused SMEs…
• Waltham, MA
• 11 Employees
• Yonkers, NY • Housewares & Personal Care
• 55 Employees  100% recycled inputs
• Baked Goods  Return mailer recycling
 Open hiring policy = opportunities for  Preserve Gimme 5 Program to bring
individuals with barriers to employment leading brands together
 100% profits to community development
 100% facilities LEED Certified
B Corporations - Public Policy - Impact Investing

11. Who are the B Corps?
B Corps are in non-traditionally “green” or “social” industries
• Oakville, Ontario
• 156 Employees
• HR and Employee/Contract Placement
 Building connections to meaningful
• San Francisco, CA
opportunities for individuals
• 5 Employees
 New division focused on placing
• Credit Card Processing & Merchant
executive leaders focused on
Services
stewardship through business
 10% gross profits donated to
customer’s charity of choice
 Certified Green Business
 Local & Low-Income Suppliers
B Corporations - Public Policy - Impact Investing

12. How does a company become certified?
To become certified a company must:
1.Earn a minimum score of 80 (out of 200
available points) on the B Impact
Assessment
2.Adopt the B Corp Legal Framework to
bake the mission of the company into its
legal DNA
3.Sign the Declaration of Interpendence
and B Corp term sheet
B Corporations - Public Policy - Impact Investing

13. Performance Standards – The B Impact Assessment
The B Impact Assessment is a free and useful web-based tool to:
1. Assess a company’s impact on each of its stakeholders
2. Improve it’s social and environmental performance using tools and best
practices embedded in the assessment
Over 2,000 companies are using the survey to benchmark their impact
B Corporations - Public Policy - Impact Investing

14. Performance Standards – The B Impact Assessment
The B Impact Assessment is:
• Comprehensive – evaluates impact in terms
of accountability, employees, consumers,
community and environment
• Adaptable - metrics tailored to industry and
company size
• Transparent – criteria and weightings made
transparent
• Dynamic – new survey created every 2
years incorporating community feedback
• Independent – developed by third-party
Standards Advisory Council
B Corporations - Public Policy - Impact Investing

15. Performance Standards – The B Impact Assessment
What does it measure?
+ Social Enterprise Business Models
Workers Job Growth Beneficial Products/Services
Compensation & Benefits Targeting Underserved Communities
Work Environment Beneficial Supply Chain
Employee Ownership
Community Suppliers
Local
Diversity
Charity/Volunteerism
Environment Energy Use
Facilities
Supply Chain
Manufacturing
Must earn 80 of 200 available points
Governance Transparency Must be verified w/ random on site audit
Accountability
B Corporations - Public Policy - Impact Investing

16. How do B Corps stack up against other sustainable businesses?
B Corp 2012 Index
Certified B Corps score 25% higher than other sustainable
businesses on the B Impact Assessment*
Other Sustainable
Overall Certified B Corps
Businesses
Overall Score 105 84
Impact Areas % of points earned on B Impact Assessment
Workers 56% 48%
Community 62% 45%
Environment 59% 38%
Governance 73% 57%
* Based on median score of 504 B Corps and of 1,941 other companies that have voluntarily completed the B Impact
Assessment. For more: http://www.bcorporation.net/resources/bcorp/documents/BcorpAP2012_B-Corp-Index.pdf
B Corporations - Public Policy - Impact Investing

17. What are B Corps doing to volunteer and serve their
local communities?
~20% allow >20 hrs/year of paid time off for community service
32% donate >10% of profits or 1% of sales to charitable organizations
25 B Corps have over 75% of employees take paid time off to volunteer
>200 hrs of employee community service
>5% net profits given to charity
100% employee owned
1075 volunteer hrs in 2010
$10,285,931 raised for literacy & libraries
Employees determine charitable donations
>20hrs/year of paid time off for community service
Employee committee create monthly volunteer opportunities
B Corporations - Public Policy - Impact Investing

18. Legal Standards – The B Corp Legal Framework
B Corps amend their Articles of Incorporation, requiring them to consider the
impact of decisions not only on shareholders but also on stakeholders
What are the benefits?
• Gives legal permission and protection to
officers and directors to consider all
stakeholders, not just shareholders
• Creates additional rights for
shareholders to hold directors and officers
accountable to these interests
• Limits these expanded rights to
shareholders exclusively -- non-
shareholders are explicitly not empowered
with a new right of action
B Corporations - Public Policy - Impact Investing

19. What is the value of being a B Corp?
• Differentiate brand
• Maintain mission
• Save money
• Generate press
• Build Business
• Improve and benchmark performance
B Corporations - Public Policy - Impact Investing

20. Want to learn more?
• Log onto bcorporation.net to take the free B Impact Assessment
• Read B Lab’s 2012 Annual Report for stories on B Corps
• Check out Certified B Corp Dogeared’s video on Being a B
B Corporations - Public Policy - Impact Investing

21. Questions?
Vale Jokisch – vjokisch@bcorporation.net
Office: 610.296.8283
Cell: 267.227.0087
Thank you!
B Corporations - Public Policy - Impact Investing

22. Stay Informed
Blog (new look!):
www.VolunteeringIsCSR.org
Twitter:
@VM_Solutions

23. Upcoming BPN
Impact at Work:
Driving Positive Change by Encouraging
Intrapreneurship
Guest Speaker:
Britta Durtsche
Senior Manager of Chapters
Net Impact
Register:
https://www1.gotomeeting.com/register/698532408
Wednesday
April 11, 2012
10-11 a.m. PT (1-2 p.m. ET)
Confidential and Proprietary 23

24. Appendix
B Corporations - Public Policy - Impact Investing

25. Certified B Corp vs. Benefit Corp: What’s the Difference?
Benefit corporations and Certified B Corps are often confused. Both are
sometimes called B Corps by mistake or as shorthand. They share much in
common and have few important differences.
Certification vs. Corporate Form
Certified B Corporation is a certification conferred by B Lab.
Benefit corporation is a legal status administered by the state. Benefit
corporations do NOT need to be certified.
B Corporations - Public Policy - Impact Investing

26. Certified B Corp vs. Benefit Corp: What’s the Difference?
What? Certified B Corporation Benefit Corporation Same or
Different?
Accountability Directors required to consider Directors required to consider Same
effects of decisions on shareholders effects of decisions on shareholders
and stakeholders and stakeholders
Transparency Must publish a report assessing Must publish publicly a report Same
their overall social/environmental assessing their overall
performance against a third party social/environmental performance
standard against a third party standard
Performance Must achieve a verified minimum Report is not required to be Different
score on the B Impact Assessment verified, certified or audited
Support Can access portfolio of services and -- Different
support from B Lab (marketing,
raising money, etc.)
Availability Available in all 50 states and Legally recognized by 7 states Different
around the world
B Corporations - Public Policy - Impact Investing