Legal Disclaimer: The following information does not constitute legal advice and is provided solely as a reference. Business entities interested in institutionalizing their values by incorporating the interests of employees, consumers, the community, and the environment into their corporate governing documents should discuss with their legal advisors the potential risks and liabilities associated with adoption of the language set forth below for the company's specific corporate structure and state of incorporation. Decisions by the board of directors, managing members or general partners of B-Corporations will be evaluated pursuant to standards of reasonableness, good faith and fair dealing within the relevant jurisdictions of organization.
The following Legal Road Map provides a clear, step-by-step process to change the DNA of your business by expanding the responsibilities of your corporation to take into consideration the interests of all stakeholders, not just shareholders. It is the result of eleven months work by a team of attorneys from three national law firms.
Businesses are governed by the corporate statutes of the state of their organization. The process of institutionalizing stakeholder interests into your governing documents is therefore dependent on your state of incorporation and your legal structure (e.g., Corporation, LLC, Partnership). As a result, this process will vary from state to state.
Please confirm the following to learn your legal roadmap to becoming a B Corporation: