This month marks the two-year anniversary of Georgia becoming the 35th state in the country to enact legislation enabling entrepreneurs to form benefits corporations. Considering benefits corporations (“B corps”) have not been recognized by statute in Georgia until recently, many business owners may not have thought or even heard of them.
What’s a Benefits Corporation?
A “benefit corporation” is a “corporation whose articles of incorporation contain a public benefit provision and a statement that the corporation is a benefit corporation.” O.C.G.A. §14-2-1802(1)
The requirement to state that one has a public benefit corporation seems simple enough, but what does “public benefit” entail? “Public benefit” means “a positive effect, or reduction of negative effects, on society, on the environment, or on one or more communities or categories of persons, entities, or interests, other than shareholders in their capacity as shareholders…” O.C.G.A. §14-2-1802(2) [in part]
Benefits Corporations Go Beyond Profit
B Corps are those that go beyond mere profit and seek to enhance society at large, whether it be through the pursuit of art, technological advancement, or otherwise. These public benefit goals must be enshrined in the articles of incorporation, along with the standards by which the corporation will pursue those goals.
If you’re a starting business, great! You can start a benefits corporation from the get-go. But if you’re an existing corporation that wants to create one, you will need to get the approval of your existing shareholders to make the transition.
The ability to give back to one’s community can be a great incentive for the public—and potential customers—to want to do more business with your company. In fact, we think it’s such a great idea that we have formed our own B Corp, SAGE Dox, Inc.! Check us out at www.sagedox.com!
Why You Should Consider Becoming a Benefits Corporation
Forming a benefits corporation sends a strong signal to employees, customers and investors that your business is committed to its people and community while driving positive change for society at large. Consequently, benefits corporations often enjoy higher levels of employee engagement and customer loyalty.
Continue reading to learn about some of the biggest benefits of forming a benefits corporation in today’s economy.
1. Boost Employee Retention, Productivity and Morale
Involving your employees in achieving a big, positive goal is one of the best ways to boost retention, productivity and morale. When you provide your employees opportunities to be part of something important, you’re showing them that you trust them and their expertise. You’re also showing them that you’re invested in their long-term success.
2. Secure Media Opportunities
Getting that TV or magazine interview you’ve always dreamed of is tough, especially with millions of other business owners competing to get featured as well. As a benefits corporation, you have an advantage when it comes to catching the media’s attention. How? The very essence of a benefits corporation is newsworthy — providing unique solutions for your local community or society at large makes for a great story.
Whether your company is developing life-saving technology or providing educational resources to marginalized communities, you’re sure to catch a reporter’s attention with the proper marketing and PR strategy. As more consumers prefer to do business with companies that align with their values, these interviews can support your business’ growth and long-term success.
3. Build a Lasting Legacy
By investing in employee development, community initiatives and a meaningful mission, businesses can make themselves more attractive to talented job seekers, assert their place as leaders in their community and increase their profitability. Reputation is everything in entrepreneurship, and building a legacy for yourself and your business can open many doors for you in the future.
Check out our blog post for strategies to help you establish your business’ legacy.
We Can Help You Become a Benefits Corporation
A company is only as strong as its mission and employees. To get started on your path to becoming a benefits corporation, send us a message. Our business experts are ready to help you take your company and team to the next level.
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