B - CORPORATION CERTIFICATION IN LA COUNTY 2017 SUSTAINABLE LAW - - PowerPoint PPT Presentation

B-CORPORATION CERTIFICATION IN LA COUNTY

SUSTAINABLE LAW GROUP P.C.

• WWW. SUSTAINABLE-LAWYER.COM

2017

MEET TEAM SLG

S u s t a i n a b l e L a w G r o u p , P . C . [ S L G ] r e p r e s e n t s c l i e n t s t h a t s e e k p o s i t i v e s o c i a l c h a n g e a n d s t r i v e t o m a i n t a i n t h e h i g h e s t e t h i c a l s t a n d a r d s . O u r c l i e n t s i n s p i r e u s t o h e l p t h e m b e c o m e t h e b e s t t h a t t h e y c a n b e . W e a r e a c e r t i f i e d B - C o r p o r a t i o n , 1 % f o r t h e P l a n e t M e m b e r , c e r t i f i e d g r e e n b u s i n e s s a n d s o c i a l e n t e r p r i s e w i t h L A C o u n t y .

BENEFIT CORPORATION VERSUS B-CORPORATION

++ A Benefit Corporation is a type of a legal entity like a LLC

• r traditional c-corporation.

++Becoming a B-Corporation is a certification process rather than a formal legal structure. Almost any business entity could be a B-Corp! B-Corp certification is for your company what organic certification is for your vegetables.

BENEFIT CORPORATION VERSUS B-CORPORATION

Benefit Corporations B-Corporations LLCs Sole Proprietorships Food Alliance Certified ISO 26000 MultiCapital Scorecard

BENEFIT CORPORATION

++ Mandates directors & officers to consider non-financial interests in making company decisions. See Cal. Corp. Code Sec. 14601 et. seq. ++ Protects directors & officers from shareholder reprisal if non- financial interests are placed over financial ones. See Cal. Corp. Code

• Sec. 14601 et. seq.

++ Provides the opportunity to establish a general public benefit +

• ptional specific public benefit. See Cal. Corp. Code Sec. 14601 et. seq.

++ Requires an annual benefit report on overall social and environmental performance using recognized third party standards (e.g. B-Corp). See Cal. Corp. Code Sec. 14601 et. seq.

B-CORPORATION CERTIFICATION

1 2 3 4

80+ PTs

LIKES 2,000+

Taking the B- Impact Assessment Developing or Amending Corporate Legal Structure Taking the Interdependence Oath + Fee Joining the B- Corp Community

B - I M P A C T A S S E S S M E N T

G O V E R N A N C E W O R K E R S

E N V I R O N M E N T

C O M M U N I T Y

Focus on your internal governance documents and

• wnership structure.

I M P A C T M O D E L Focus on employee benefits, ownership and work place flexibility. Focus on community engagement through volunteer efforts, local employment opportunities and policy work. Focus on operational impact on the environment. Focus on whether your company through its product or service provides a solution to some social or environmental problem.

L E G A L I M P L I C A T I O N S

C O R P O R A T I O N ( S O R C ) L L C O R S O L E P R O P R I E T O R

++ Amending bylaws to contain certain statutory language ++ Mandatory conversion to a benefit corporation ++ Biannual B-Corp Assessment ++ Amending operating agreement to contain certain statutory language ++ Biannual B-Corp Assessment

Keep good company.

BEING A B-CORPORATION IN LA

I N V E S T M E N T C L I M A T E

+ + T h e “ B ” d e s i g n a t i o n a t t r a c t s c a p i t a l . S o m e i n v e s t o r s a n d g r o u p s a r e e x p l i c i t l y p a r t i a l t o s o c i a l l y r e s p o n s i b l e b u s i n e s s e s , w i t h e v e r - g r e a t e r n u m b e r s o f i n v e s t o r s p u t t i n g m o n e y i n s u c h c o m p a n i e s ( e . g . L I F T E c o n o m y F u n d ) . + + A t t r a c t i n g i n v e s t o r s t h a t a r e i n t e r e s t e d i n t h e l o n g - t e r m s u c c e s s o f y o u r c o m p a n y a n d n o t a q u i c k t u r n a r o u n d . + + W i t h t h e i n f l u e n c e o f h o l l y w o o d , L A i s u n i q u e i n t h a t m a n y i n v e s t o r s w a n t t o i n v e s t i n a c o m p a n y t h a t h a s " a n a n g l e " . + + C a l i f o r n i a H a s M o r e B i l l i o n a i r e s T h a n E v e r y C o u n t r y E x c e p t T h e U . S . A n d C h i n a .

F O U R K E Y F A C T O R S

+ + P e r c e p t i o n G a p : M o s t i n v e s t o r s b e l i e v e i n s u s t a i n a b i l i t y ’ s f i n a n c i a l a d v a n t a g e s . + + M i l l e n i a l M o v e m e n t : T h e N e x t G e n e r a t i o n c a n d r i v e d e m a n d . + + W o m e n L e a d i n g t h e W a y : F e m a l e i n v e s t o r s

• v e r w h e l m i n g l y s u p p o r t s u s t a i n a b i l i t y .

+ + B r i g h t F u t u r e : S u s t a i n a b l e i n v e s t i n g h a s c l i m b e d s h a r p l y a n d i s g a i n i n g m o m e n t u m .

++ 15% price reduction on applicable County solicitations. ++ Visibility on County exclusive bidding database. ++ Access to specific federal funding received by the County. ++ It's free!

LA COUNTY SOCIAL ENTERPRISE CERTIFICATION

"IF LOS ANGELES COUNTY WERE A NATION, ITS ECONOMY WOULD BE THE 19TH LARGEST IN THE WORLD. IT IS HOME TO MORE THAN 244,000 BUSINESSES, WITH MORE MINORITY- AND WOMEN-OWNED BUSINESSES THAN ANY OTHER IN THE NATION. IT IS THE NATION'S TOP INTERNATIONAL TRADE CENTER AND MANUFACTURING CENTER. LOS ANGELES COUNTY'S 37 DEPARTMENTS AND $24.2 BILLION BUDGET PROVIDE EXTENSIVE BUSINESS OPPORTUNITIES TO THE PRIVATE SECTOR, BOTH IN CONTRACTS FOR GOODS AND SERVICES."

++ Certified Social Enterprise bids on widgets contract for $10,000 with the County. ++ Non-certified company bids on widgets contracts for $9,000 with the County. ++ Certified Social Enterprise wins bid even though it's charging 10% more than the non-certified company.

Procurement Contract Example

SE Bid of $10K Non-SE Bid

• f $9K

15% Bid Reductions makes the Bid $8.5 K

++ California represents 10% of all the B-Corps worldwide. ++ Marketing & Branding Purposes (developing network and strategic business partnerships available within the B “corporate tribe"). ++ Internal Operational Best Practices.

ADDITIONAL BENEFITS

++ Educational local chapter of B-Corps. ++ Direct link to B-Lab's national team. ++ Learn about recent developments in the industry. ++ Engagement opportunity with other B-Corps.

B-LOCAL LA MEMBERSHIP

++ Social Enterprise Alliance - LA ++ Conscious Capitalism - LA ++ Net Impact - LA ++ Sustainable Business Council of LA

ADDITIONAL ORGANIZATIONAL SUPPORT

THANK YOU

WWW.SUSTAINABLE-LAWYER.COM