User:Sanjana Obili/sandbox

IRAC Scenario and Answer
Scenario:

We are a sustainable consumer goods company committed to create a positive impact on the environment. We are a registered C corporation and we intend on getting a b corp certification.

Answer:

ISSUE: Does a company need to be a Benefit Corporation or can it be a C corporation as well in order to file for a B corporation certification?

RULE: Generally, a Benefit Corporation is an incorporating structure similar to a C-Corp, sole proprietorship, partnership, or LLC while a certified b corps are social enterprises verified by B lab, a non- profit organization. Usually, the best way for corporations to meet the legal requirement for B Corporation certification is to use the benefit corporation legal structure. For corporations in some states, like Delaware, using the Benefit corporation structure is the only way to meet the legal requirement for B Corp certification.

ANALYSIS: Here, you do not need to be a Benefit Corporation to become a Certified B Corporation in most of the states, although you may need to become a Benefit Corporation to remain a Certified B Corporation.

CONCLUSION: Therefore, the company does not need to be a Benefit Corporation in most of the states, it can be a C corporation as well in order to file for a B corporation certification.

Neutral- Voiced Summary
An issue in deciding to be a Certified B Corporation would be the administrative and legal costs a corporation will face in changing their business model in accordance to B Labs regulations.

As a matter of law, in Massachusetts or States that recognize B Corporation Certification, it doesn't bring any legal significance to its shareholders, stakeholders or to  it’s employees. However, the certification brings a multitude of branding tools to the corporation.

B Corp Certification will bring no legal liabilities to a C Corporation or any for profit business structures apart from its business model structure which should adhere to the B Labs. To add on, many C corporations usually adapt the B Corporation Certificate to gain goodwill.