B Corp(oration)s:
B Corp certification is a 'seal of approval' given to sustainable businesses (similar to Fair Trade coffee or USDA Organic foods). B Corps are certified by nonprofit organization B Lab after meeting rigorous standards of social and environmental performance, accountability, and transparency. Today, there are more than 600 Certified B Corps from 15 countries and 60 industries, all working together toward a common goal: to redefine success in business.
Benefit Corporation:
Benefit Corporations are a new class of corporation that 1) creates a material positive impact on society and the environment; 2) expands fiduciary duty to require consideration of non-financial interests when making decisions; and 3) reports on its overall social and environmental performance using recognized third party standards.
L3C:
A low-profit limited liability company (L3C) is a legal business structure created to bridge the gap between non-profit and for-profit investing. This structure facilitates investments in socially beneficial, for-profit ventures while also simplifying IRS compliance for program-related investments, a type of investment made by private foundations.
Flexible-Purpose Corporations (California)
The flexible purpose corporation law was drafted by a team of experienced California corporate attorneys as a largely stand-alone companion to California’s General Corporation Law (Cal. Corp. Code §§ 100–2319). It is intended to allow shareholders to determine their own preferred mix of social and economic corporate objectives. The founders of a flexible purpose corporation select (and identify in the articles) one or more special purposes from a list, including objectives such as promoting positive short- or long-term effects of the corporation’s activities on its employees, customers, and suppliers, the community, or the environment—as well as traditional charitable objectives of non-profits.
Unlike benefit corporations, a flexible purpose corporation is not obligated to pursue a generalized public benefit and is not required to measure its performance against any third-party standard. However, a flexible purpose corporation is subject to special shareholder reporting requirements (unless it is eligible for a shareholder waiver of the requirements and its shareholders elect to waive them).
LLC
A limited liability company (LLC) is a flexible legal form of enterprise that blends elements of partnership and corporate structures. It provides limited liability to its owners in the vast majority of US jurisdictions.
An LLC can be certified as a B Corp.
Fair Trade
Fair trade is an organized social movement that aims to help producers in developing countries to make better trading conditions and promote sustainability. The movement known as fairtrade indicates the certification and advocates the payment of a higher price to exporters as well as higher social and environmental standards. It focuses in particular on exports from developing countries to developed countries, most notably handicrafts, coffee, cocoa, sugar, tea, bananas, honey, cotton, wine, fresh fruit, chocolate, flowers, and gold.
There are several recognized Fairtrade certifiers, including Fairtrade International, IMO and Eco-Social. Additionally, Fair Trade USA, formerly a licensing agency for the Fairtrade International label, broke from the system and is implementing its own fair trade labelling scheme, which has resulted in controversy due to its inclusion of independent smallholders (selling via contract production) and estates for all crops.
The UN Global Contact's 10 Principles:
(from the site)
The UN Global Compact's ten principles in the areas of human rights, labour, the environment and anti-corruption enjoy universal consensus and are derived from:
- The Universal Declaration of Human Rights
- The International Labour Organization's Declaration on Fundamental Principles and Rights at Work
- The Rio Declaration on Environment and Development
- The United Nations Convention Against Corruption
The UN Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labour standards, the environment and anti-corruption:
- Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
- Principle 2: make sure that they are not complicit in human rights abuses.
- Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
- Principle 4: the elimination of all forms of forced and compulsory labour;
- Principle 5: the effective abolition of child labour; and
- Principle 6: the elimination of discrimination in respect of employment and occupation.
- Principle 7: Businesses should support a precautionary approach to environmental challenges;
- Principle 8: undertake initiatives to promote greater environmental responsibility; and
- Principle 9: encourage the development and diffusion of environmentally friendly technologies.
- Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.
(sources as hyperlinks)
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