What Do B Corps and Cooperatives Have in Common?

What do Bcorps and Cooperatives have in common?

I came across Change.org today, and I noticed they are a B Corp. It got me thinking about the difference between B corps and a Cooperative? I was unfamilar with the details of the structure, though I am familiar with other business models. Here is  a summary of what I learned from my friends at wikipedia.

B Corp resembles a C Corp or a LLC in class but requires by law to create general benefit for society as well as shareholders, while Cooperatives are autonomous  associations of people who voluntarily cooperate for their social, economic, and cultural benefit.

B Corp must create a material positive impact on society, and consider how their decisions affect their employees, community, and the environment. A cooperative is a legal entity owned and democratically controlled by its members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees. Cooperatives often share their earnings with the membership as dividends, which are divided among the members according to their participation in the enterprise, such as patronage, instead of according to the value of their capital shareholdings.

Cooperatives date back as far as human beings have been organizing for mutual benefit, while B corps are new, with Maryland becoming the first US state to pass B corporation legislature in 2010.

I think it says a lot that we are seeing this type of legislature pass across the country. It paves the way for more companies to be run with integrity, purpose, and social responsibility, regardless of the structure. At the end of the day, it’s about intent, not form.

Submitted by Kenny Bavoso of Coop.org