1. Center for Non-Profit and Public Leadership
Haas School of Business – UC Berkeley
Andy Fyfe
B Lab
650.759.9592
afyfe@bcorporation.net
www.bcorporation.net

2. B Corporations * Impact Investing * Public Policy
Big Trend
Use market forces to solve social problems
Conscious consumers
Socially responsible investors
Social entrepreneurs and sustainable business
60 million Americans
$2.7 trillion dollars
100,000+ businesses

3. B Corporations * Impact Investing * Public Policy
Big Problem
Our current capitalist system wasn’t designed for this
• Current corporate law works against sustainability and social impact
• No standards to distinguish ‘good companies’ from good marketing

4. B Corporations * Impact Investing * Public Policy
Maximize
shareholder value
exclusively
20th Century 21st Century
Create
social and shareholder value
simultaneously
Big Opportunity
Shareholder corporation Stakeholder corporation
The evolution of capitalism

5. B Corporations * Impact Investing * Public Policy
High quality jobs
• Good pay
• Better benefits
• Greater ownership
• Better work environment
• Better career development
Big Difference
Stakeholder corporations redefine success in business
Improve our quality of life
• Less waste
• More renewables
• More philanthropy
• More volunteerism
• More suppliers local, W/M-owned

6. B Corporations * Impact Investing * Public Policy
Good products
Last 10 years Next 10 years
Big Need
Good companies
+ 500 others
Standards to drive support

7. B Corporations * Impact Investing * Public Policy
The Entrepreneur is The Engine of Change
Initiative 1:
Shine a light on the
Entrepreneur
Initiative 2:
Remove legal
impediments for the
Entrepreneur
Initiative 3:
Drive capital to the
Entrepreneur
B Lab is a nonprofit organization that supports the world’s leading
entrepreneurs using business to solve social problems

8. B Corporations * Impact Investing * Public Policy
What is a B Corporation?
• Meet independent, comprehensive and transparent
standards of social and environmental performance
• Meet higher standards of transparency
• Meet higher legal standards of accountability

9. B Corporations * Impact Investing * Public Policy
Bay Area B Corps

10. B Corporations * Impact Investing * Public Policy
The Entrepreneur is The Engine of Change
Initiative 1:
Shine a light on the
Entrepreneur
Initiative 2:
Remove legal
impediments for the
Entrepreneur
Initiative 3:
Drive capital to the
Entrepreneur
B Lab is a nonprofit organization that supports the world’s leading
social entrepreneurs using business to solve social problems

11. B Corporations * Impact Investing * Public Policy
Initiative 2: Advancing Supportive Public Policies
The community becomes a powerful constituency
• New corporate form > Benefit Corporations
• 11 states passed
• 5 states moving forward
• Strong business support

12. B Corporations * Impact Investing * Public Policy
Key Provisions:
Purpose
• to create material positive impact on society and the environment
Accountability
• directors and officers shall consider effect of decisions on stakeholders
Transparency
• publish annual report in accordance with a third party standard
Benefit Corporation Legislation
“The most original , constructive
thought in corporate governance
in 25 years.”
Former President, American Bar Association

13. B Corporations * Impact Investing * Public Policy
“Five years from now, ten years from now, we’ll look back and say this was the start of
the revolution. The current system doesn’t work – this is the future.”
Yvon Chouinard
Patagonia
First Day to Register in California