Purpose Becomes a Public Benefit Corporation

Purpose is excited to announce that we have officially filed in the state of Delaware to become a public benefit corporation, further solidifying our organizing commitment to creating positive social impact. Purpose has been a “Certified B Corp” since 2012, measured by the nonprofit B Lab against a set of social and environmental performance standards. By taking the step to become a benefit corporation, we’ve joined a new class of companies that voluntarily meet higher standards of corporate purpose, accountability, and transparency.

Purpose President and Head of Client Services Kevin Steinberg said: “Becoming a public benefit corporation marks a major milestone in the growth of Purpose. The change is not only a sign of the company’s increasing reach and maturity, but also an affirmation of how we approach our work and the way we partner with clients, funders and collaborators to have impact.”

Purpose COO and Head of Partnerships Henry Donahue shared how the public benefit corporation structure will support the organization’s mission and goals: “Purpose was founded on its commitment to social impact, and we’ve challenged ourselves to apply that lens comprehensively, whether through our work with partners and funders or through our certification as a B Corp. Our move to become a public benefit corporation is a natural extension of that ethos, and we’re thrilled to take it one step further to even better align our business model with our mission and vision.”

A growing number of states have legalized benefit corporation status, which is making it easier for more companies to maximize the good they do for the world. There are currently over 1,500 known registered benefit corporations, including some leading brands such as Patagonia and Method. This alternative form of incorporation is fueling the work of companies like Purpose by legally recognizing, and requiring, the following commitments of the organization: 1) to create a material positive impact on society and the environment; 2) to consider the impact of decisions not only on shareholders but also on workers, community, and the environment; and 3) to make available to the public an annual benefit report that assesses overall social and environmental performance against a third party standard. Benefit corporations are well-positioned to prioritize these goals as they are legally protected from shareholders suing if they feel a company is not maximizing profits.

B Lab offers a helpful resource here that answers common questions about the benefit corporation structure and explains how it differs from Certified B Corporations and traditional corporations.