Question

How is a B-Corp different from a C-Corp? Explain the “triple bottom-line” that B-Corps must meet (as we discussed in class).  

Answer 1

A B corporation is a way of structuring the business which also includes as part of their responsibility to work towards the welfare of the community, their employees and the environment apart from its shareholders. While the C corporation is a business structure focussed on maximizing shareholder interest and wealth. Thus the scope of a B corporation is wider and more holistic.
The B corporation is committed to the three primary outcomes:
1) Financial success: As with any business, it is committed to furthering the interests of the shareholders and thus have to ensure financial viability and success to ensure good returns for the capital invested.
2) Environment: It is also committed to ensure that the environment is protected and through its activities, there is an improvement in the global environment and it leaves a positive footprint on nature.
3) Community: A B corporation is also responsible for the upliftment of the community within which it operates and runs its business. This upliftment could be in the form of better education, healthcare and overall better standard of living.