Benefit corporations and Certified B Corporations are often, and understandably, confused.  Both are sometimes called B Corps by mistake or as shorthand.  They share much in common and have a few important differences.

Quick snapshot:

Certified B Corporation is a certification conferred by the nonprofit B Lab.  Benefit corporation is a legal status administered by the state.  Benefit corporations do NOT need to be certified.

Certified B Corporations have been certified as having met a high standard of overall social and environmental performance, and as a result have access to a portfolio of services and support that benefit corporations do not.

What are the commonalities between benefit corporations and Certified B Corporations?

• Accountability: Directors of both are required to consider the effect of decisions not only on shareholders, but also on other stakeholders, such as workers, community, and the environment.
• Transparency: Both are required to publish publically a report  assessing their overall social and environmental performance against a third party standard.
• B Lab: B Lab is the nonprofit organization that helped to develop the benefit corporation Model Legislation and works with the community of Certified B Corporations and others to marshal support for its passage.  B Lab is also the nonprofit organization that certifies and supports Certified B Corporations. 

What are the differences between benefit corporations and Certified B Corporations?

• Performance: Each Certified B Corporation has achieved a verified minimum score on the B Impact Asessment (80/200).  While benefit corporations are required to publish an annual report assessing their overall social and environmental performance against a third party standard, that report is not required to be verified, certified, or audited by a third party standard organization. 
• Support: Certified B Corporations have access to a portfolio of services and support from B Lab to help them with marketing,  sales, raising money, saving money, learning from and doing business within the community of Certified B Corps.   

• Availability:  Benefit corporation is a corporate status legally recognized by 7 states as of 12/15/11.  Certified B Corporation is a certification available to businesses in all 50 states and around the world.  As of 11/15/11 there are 475 Certified B Corps from more than 60 industries.