Yesterday we applied to become a B Corporation. This is a new type of corporate entity whose mission is to create benefit not just for shareholders, but for the community, environment, employees ... the stakeholders. A traditional Corporation has a legal mandate to maximize shareholder return, which often comes at the expense of these stakeholders. B Corporations are a new community of companies that seek to be good stewards of our natural and human resources, while still providing a return to their shareholders.
We at Loanables were excited to learn about the B Corporation movement, because it is exactly in line with the company we want to build. We believe that companies have a duty to serve their communities and employees, not just their shareholders. By being explicit about this, B Corporations will attract like-minded shareholders who are willing to allow social & environmental benefit to play into corporate decisions. Thus it becomes not a conflict of interest, but rather an expression of interest.
Would you invest in a B Corporation?
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