Pursuing a social mission has become increasingly commonplace for today’s businesses. Once the exclusive domain of non-profit organizations, socially-focused, for-profit companies are flourishing, in large part due to the support of consumers, shareholders, and even venture capital firms, many of which have fund portfolios earmarked for such projects. If you are contemplating a socially-driven business model, there are two distinctive paths to consider: (1) organizing as a public benefit corporation (PBC), or (2) becoming certified as a B corp. Understanding the specific advantages of each one will help you choose the structure best suited for your business.

It has become fairly commonplace for companies of all sizes and industries to tout a commitment to ethical and socially-conscious business practices as a key differentiator in their respective markets. For example, a clothing company might distinguish itself by its commitment to sustainable manufacturing practices that include waste recycling and efficient water usage systems. Aside from being a means of establishing brand identity, this promise also may help a company attract capital from investors who share a similar sense of social responsibility. Regardless of the reason, companies who choose to adopt standards which exceed basic government guidelines must take appropriate steps to ensure the fulfillment of such promised social and ethical obligations.