Demystifying B Corps & Public Benefit Corporations
B Corp = Certification. Public Benefit Corporation = Legal Status.
The growing integration of environmental, social, and governance (ESG) factors into business and investment decisions has become a movement in the last decade. It has also become a hot topic in policy and media circles—even though more and more companies are showing how considering ESG is a driver of long-term growth and bottom-line results.
At the same time, a growing number of companies aspire to go beyond ESG by focusing on positive impact and using business as a force for good. This includes more than 2,000 Certified B Corporations in the U.S. (and more than 10,000 worldwide). While defining “business as a force for good” varies by company and/or industry, every B Corp—whatever its location, size, or industry—shares the commitment to equally value people, planet, and profit, and their efforts are validated by a third-party entity.
Meanwhile some U.S. companies have gone even one step further by legally incorporating as a Public Benefit Corporation, or PBC.
There’s a lot of understandable confusion surrounding these terms and the social enterprise movement itself. As a leading B Corp, we are often asked questions like: What is a B Corp? How does a B Corp differ from a PBC? Can a company be both?
So, let’s dive deeper! But before we do (spoiler alert!) here are the simplest, quickest answers to the above questions:
- B Corp is a Certification, while Public Benefit Corporation is a Legal Status.
- You can be one, the other, or both. Global Prairie proudly holds both distinctions.
- Being a B Corp proves your impact on the world…Being a Public Benefit Corporation protects your mission in the boardroom.
With that as a backdrop, let’s explore the origins of the B Corp movement and how B Corp and PBC designations are enabling companies to go beyond ESG by generating both positive impact and profits.
The Challenge: Traditional Business Incorporations Can be Limiting When it Comes to “Doing Good”
For decades, most U.S. businesses incorporated as C Corporations or LLCs, structures designed to generate shareholder returns. While the “business judgment rule” grants boards some discretion, the prevailing legal and cultural expectation has long been clear: board directors must prioritize financial gain above all else.
This framework poses a significant challenge for companies aiming to prioritize broader goals such as employee well-being, environmental stewardship, and community impact. Too often, purpose-driven companies find themselves walking a legal tightrope when purpose and profit appear to be at odds.
An innovative model was needed—one that would allow businesses to pursue social and environmental goals, without compromising their fiduciary duty. That’s where Public Benefit Corporations entered the picture, offering a new path forward. Being a Public Benefit Corporation allows boards legal cover to prioritize broader goals explicitly, without having to squeeze them into a profit-maximization rationale. This is a path that aligns with our Global Prairie values and proves that companies can thrive, and outperform competition, while equally balancing purpose and profit.
Public Benefit Corporations Build Purpose into a Company’s Legal Structure
A Public Benefit Corporation represents a progressive legal status recognized by many U.S. states, created to weave purpose seamlessly into the fabric of a company’s governance.
Unlike traditional corporations that focus on maximizing shareholder value, the legal framework of a Public Benefit Corporation empowers and protects directors as they consider a wider spectrum of stakeholders, including employees, customers, communities, and the environment. Through state incorporation, Public Benefit Corporation status ensures that purpose is not voluntary but a crucial piece of the company’s identity. Most states require Public Benefit Corporations to maintain transparency by publishing an annual impact report that outlines their social and environmental impact.
While the law safeguards a company’s ability to prioritize purpose alongside profit, it does not measure performance. Rather, that role is often filled by independent certifications (e.g. B Corp Certification) that assess and validate whether companies are truly fulfilling their stated commitments. These certifications amplify a Public Benefit Corporation’s commitment to using business as a force for good, resonating deeply with our Global Prairie mission to cultivate a healthier world.
Becoming a PBC is about building purpose into your DNA, not just your marketing
In practice, achieving and embracing Public Benefit Corporation status means recognizing a fiduciary duty to a mission beyond mere profits. Public Benefit Corporations are responsible not only to their shareholders but also to the public, ensuring the business initiatives drive meaningful, lasting change and benefit others. By committing to a public mission, Public Benefit Corporations have the opportunity to strengthen trust in the communities they live and work in.
B Corps: Certifying a Company’s Status as a Force for Good
A B Corp is a for-profit business that has achieved certification, not legal status, affirming its commitment to balancing profit with purpose and dedication to operating their business in ways that benefit all stakeholders: employees, communities, clients, and the planet.
The certification process, historically evaluated on a points-based system, has evolved to assess businesses across seven impact topics: Purpose & Stakeholder Governance; Climate Action; Human Rights; Fair Work; Environmental Stewardship & Circularity; Justice, Equity, Diversity & Inclusion (JEDI); and Government Affairs & Collective Action.
To become B Corp certified, companies must first meet a set of foundation requirements, including legal accountability, operational history, and risk assessments, before demonstrating compliance with the mentioned impact topics. Certification now emphasizes that businesses cannot trade strong performance in one area for weak performance in another; meeting baseline expectations in all seven topics is essential.
Additionally, accountability is ongoing: B Corps must recertify every three years, with progressive requirements that increase at Years 3 and 5, ensuring continuous improvement and alignment with evolving best practices. This process ensures that companies remain committed to continual growth and impact.
The Power of “And”: Being a B Corp and a PBC is a Powerful Combination
B Corps and Benefit Corporations aren’t contradictory. They are complementary.
For Global Prairie, doing good isn’t an afterthought. Rather, it’s integral to how we operate. Our commitment to being both a Public Benefit Corporation and a Certified B Corp provides a solid foundation for growth and acts as a powerful engine for impact. Our legal designation as a Public Benefit Corporation ensures our purpose is embedded within our structure, while B Corp certification ensures transparency, accountability, and an unwavering drive to improve. This dual commitment provides a robust platform for impactful change.
Since becoming a Certified B Corp in 2015, we’ve improved our score with every recertification, demonstrating our constant efforts to improve. In 2025, our recertification score of 192.9 earned us the highest B Corp score in the world.
In 2018, Global Prairie adopted Public Benefit Corporation status, embedding our purpose into our legal foundation—the same year we became 100% employee owned, deepening our drive to cultivate a best-in-class workplace. Additionally, in 2025, we achieved national certification as a Women’s Business Enterprise (WBE) by the Women’s Business Enterprise National Council (WBENC), the leading third-party certifier of businesses owned and operated by women in the U.S.
Together, these certifications and designations strengthen and affirm our purpose and challenge us to continually measure, prove, and improve our impact while ensuring our purpose is both protected and perpetually driven to new heights. And we have no plans to slow down. We believe in the powerful combination afforded by being both a Public Benefit Corporation and a B Corp, so whether you’re just starting your purpose-driven journey or deep into impact strategy, we hope this article helps you better understand how these designations work—and how they can work together.
Interested in joining the movement that is using business as a force for good?
Whether you’re starting small or ready to take the leap, now’s the time to embed purpose into your business model. Discover how Global Prairie can help.