homeBody is a Public Benefit Corporation
We sometimes run into confusion or skepticism about being a B Corp
So here are 9 FAQs (and 1 non-FAQ) to clear that up
1. What is a B Corp?
A public benefit corporation is a type of for-profit corporate structure recognized in 30 US states that makes seeking profit and seeking positive social impact its two legally defined goals
2. Wait, then what does a regular corp do?
A traditional company is more or less only obligated to maximize shareholder value - even if it might negatively impact communities, employees, or the environment
3. How is a B Corp different?
B Corp status allows a company to consider all stakeholders impacted by its decisions by defining certain public benefits it wants to achieve. This protects its mission as the company grows
4. How is a B Corp monitored?
Most states (but not all) require B Corps to publish an annual report reviewing how they pursued their public benefit(s) based on a third party standard that the company selects
5. What happens if a B Corp doesn't meet its goals?
If they have fallen short, they must give reasonable explanations to their shareholders as to why and how they plan to address them in the next year
6. Aren't they riskier investments?
No way. Hundreds of B Corps have raised money from major funds like Andreessen Horowitz, Founders Fund, and First Round Capital just to name a few. Esty, Kickstarter, and Rally Software are all successful B Corps
7. Are they taxed differently?
No. B Corps are taxed the same way as any other corporation (as S or C Corps)
8. Do shareholders have less rights?
No. shareholders have the same rights and privileges as every other corp structure. Furthermore, no third party has standing to take action against a B Corp for failing to pursue its defined purpose
9. What are the advantages for being a B Corp?
Our members can trust us - we are a neutral third party between landlords and tenants that fairly supports both - which improves adoption and retention
Our employees can rely on us - we create a positive work culture and respect their time and lives outside of work - which improves morale and productivity
Our investors can support us - we will provide significant returns because we have well-defined goals - which increases our value and reach
10. What are homeBody's defined public benefits?
To strive to be environmentally sustainable and cause no unnecessary harm to the planet or its inhabitants.
To create a balanced and supportive work environment
To provide material support to groups and policies advocating for housing as a right