Steward ownership and B Corporations

A comparison

B Corporations, also known as B Corps, are companies that strive to have a positive impact on society and the environment through their business model. B Corps undergo a transparent certification process by the non-profit organization B Lab. To become certified, they must demonstrate their impact on employees, customers, the community, and the environment in the B Impact Assessment. The company's corporate structure, stakeholder relationships, value chain, and commitment, among other things, play a role. Companies that have scored well (with a minimum score) in this assessment are certified as B Corps. The information provided in the B Impact Assessment is publicly available, and the certification process is transparent. The governance structure and bylaws are also adapted for certification to include stakeholders and ensure the company's purpose. The certification is valid for three years, after which the assessment and verification must be repeated, otherwise, the B Corps certification is lost.

Compared to steward ownership, the B Corps model strives to make a direct statement about how socially beneficial the company is, or should be, in terms of corporate structure, purpose, and value chain. This is verified through the B Impact Assessment – but the certification can be dropped if the assessment does not meet the required standards. The B Corps model does not imply changes on the ownership structure of the company, which is a difference compared to steward ownership. Another difference is that the upholding of a B Corps certification is voluntary, so there is no obligation if the company's strategy changes while steward-ownership is a long-running legal commitment.

The different approaches can be combined without any problems. Any certified B Corp can implement steward ownership, and any company in steward ownership can seek B Corps certification. In doing so, steward-ownership can have a positive impact on the scores in the B Impact Assessment. Many steward-owned companies are also B Corp certified.