Assessing the Assessment: B Lab's Effort to Measure Companies' Benevolence
40 Pages Posted: 6 Feb 2017
Date Written: February 3, 2017
For benefit corporations to persuade their various audiences that they are as beneficial for society as they claim, they need reliable assessments of their social performance. Even if assessments were not required by most states’ benefit corporation statutes, it is difficult to imagine the benefit corporation form could gain credibility without them. Creating measurement tools for these assessments poses the twin challenges of balancing simplicity against validity and weighing vision against inclusiveness. This article examines how B Lab’s popular assessment tool engages these challenges.
Keywords: benefit corporation, public benefit corporation, PBC, B Lab, assessment
JEL Classification: K2, K22, L2, L21, L22, L26, L3, L31
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