Local bank is self described as B corporation. I was told it’s good for the neighborhood and “better” than traditional banks. Looking for a simple explanation that is not Wikipedia. Thank you.
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Some quick googling shows some interesting details.
B corperation is NOT a legal title but funny enough, there is a legal title called “benefit corperation that is often abreviated to B corp.
So just looking at that, it seems moddeled explicitly to give the impression that the title is an weighty legal title, while it’s actually a commercial title.
Currently, there seem to be quite strict conditions to get the commercial title.
But the funny thing is that commercial titles can simply change their conditions anytime they decide they want more money…..
So to sum it up. the B corperation title means that the company cares about looking good and is willing to pay for non-legal titles to make sure they look good.
It’s called green marketing, just because a bank is local they can call themselves a B-corp…bigger banks take bigger monthly fees for just having an account with them. Go to a credit union if you’re not using the bank for your business or if you’re not doing wires across state/country lines. It’s like my refrigerator telling you me it’s a B Corp because only some food goes bad in their every month. Credit unions are nonprofits and have different set of regulations. But sure, a local bank may invest in a local entrepreneur and thus call themselves a B Corp since that money was vested locally. Still an eye roller when I see that about banks
Historically, U.S. corporate law has not been structured or tailored to address the situation of for-profit companies that wish to pursue a social or environmental mission. While corporations generally have the ability to pursue a broad range of activities, corporate decision-making is usually justified in terms of creating long-term shareholder value.
By contrast, **benefit corporations** expand the fiduciary duty of directors to require them to consider non-financial stakeholders as well as the interests of shareholders. This gives directors and officers of mission-driven businesses the legal protection to pursue an additional mission and consider additional stakeholders.
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