When Nancy Goldstein over at Compass(x) turned me onto B corporations, I knew the concept had momentum. Nancy has a great nose for sniffing out what ideals brands should embrace in order to lead in their category. It’s a new organizational hybrid that has a for-profit brain and a non-profit heart.
Look to see more of these, especially among start-ups led by Millennials. Lucy Bernholz sees the trend, as well, and wrote about it for the Chronicle of Philanthropy:
Trend Number 5: B Corporation
For entrepreneurs trying to run businesses with a social purpose, corporate structure has been one of the persistent challenges.
Organize as a nonprofit and you’ll be forever capital constrained, organize as a commercial enterprise and you risk losing your mission to investors. Since 2006, a group called B Lab has enabled B corporations (the B stands for benefit) to gain traction around the country and lead a revolution in corporate operations. Corporate code may not be sexy, but these new efforts stand to attract billions of dollars in new investments in social businesses.