What is a benefit corporation?

A benefit corporation is a for-profit business that has made a legal commitment to more than just making money. It is a business structure, recognized by most U.S. states, that requires companies to consider how their business decisions affect people and the planet, not just their bottom line. In a traditional corporation, shareholders are typically prioritized. A benefit corporation legally requires consideration of employees, customers, community, and the environment in business decisions.

What is the difference between a B Corp and a benefit corporation?

A benefit corporation is a legal business structure, like an LLC or a sole proprietorship, created by filing paperwork with a state. A B Corp is a certification issued by the nonprofit B Lab after a review of a company's social and environmental practices. Benefit Corporations for Good certification is also a third-party certification, similar to B Corp, but built with small businesses in mind. BCFG is one of only four standards recognized by the Oregon Secretary of State and is the only one based in Oregon.

Why did we start Benefit Corporations for Good?

Benefit Corporations for Good was created because small businesses deserve a way to prove what they stand for. Many purpose-driven business owners are already doing right by their people and their community, but need a trusted and recognizable way to show it. BCFG was created as a certification that is meaningful enough to matter while being built for real small businesses, not only large companies with full-time sustainability teams.

Who is certification for?

Certification is for small businesses that care about their employees, their neighborhood, and the wider world they operate in. Certified businesses include law firms, solar companies, marketing agencies, wine bars, and other industries. Applicants do not need to be perfect, but they need to be serious about their commitment. The process includes a 60-question assessment across eight standards, followed by a short interview. For businesses with five or fewer full-time equivalent employees, the fee is $299.

Benefit Corporation Annual Report: What Is It and What Should It Include?

Benefit Corporation leaders gathering at Happy Hour for Good.

Benefit corporation status isn’t a one time filing. It comes with an ongoing accountability obligation. In most states, that takes the form of an Annual Benefit Report, filed every year and made publicly available.

What is the Annual Benefit Report?

It’s a yearly report showing how your business has pursued its stated public benefit purpose, in BCFG’s framework, how it supported People, Planet, and Profit. It’s the transparency side of benefit corporation status: the legal filing says what you’ve committed to, and the annual report shows what you actually did with it.

Who has to file one?

In Oregon, every benefit company must file an Annual Benefit Report and make it publicly available. Most other states with benefit corporation laws have a similar annual reporting requirement, though the exact format and filing process varies. Check with your Secretary of State’s office for specifics.

What should it generally include?

While exact requirements vary by state, an annual benefit report typically covers:

How the business pursued its stated public benefit purpose over the past year
Specific actions taken toward that purpose not just intentions
Any circumstances that got in the way, and how leadership responded
Where applicable, performance against a third-party standard (this is where BCFG certification overlaps with the legal reporting requirement our eight standards give you a ready-made framework to report against)

Does certification replace the legal filing?

No. They’re complementary, not substitutes. Your Annual Benefit Report is a legal requirement tied to your benefit company/corporation status. BCFG certification is independent, third-party verification. Many members find that going through BCFG’s assessment makes writing the annual report easier, since you’re already tracking the same ground.

Getting help

Writing a strong first annual report can feel like a blank page. BCFG members get support from our community in putting one together. You don’t have to start from scratch.

Learn more about Benefit Corporation Requirements, or see what criteria BCFG uses for certification.