B Corp status is a certification that a business prioritises its social and environmental impact over profits.
Any Irish for-profit company can become a B Corp keeping its existing Irish Company type once all stakeholders are aligned and the company implements the appropriate constitutional changes to adopt the B Corp ethos.
In the current climate a B Corp certification is extremely attractive. Companies can use a B Corp status to better align their business strategy with changing demands in order to build loyalty with their investor and consumer base.
A company seeking B Corp certification will need to amend its constitution to allow directors, or rather require them, to consider interests other than just shareholder interests. To that effect the constitution of a B Corp will include the following confirmations:
The stakeholder interests which the directors must consider when deciding how the company should act include:
The members of the company must also acknowledge that endeavouring to create a material positive impact on society and the environment may have an effect on the financial position of the company and that affect may be positive or negative.
Once the constitution is amended to this effect, the board of directors are legally obligated to comply with its terms.
If you have any questions about B Corp certification or if you are considering seeking certification for your company, please contact Gemma Forde at firstname.lastname@example.org or Colm Hanley at email@example.com.
The content of this article is provided for information purposes only and does not constitute legal or other advice.
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