Rmdy is a Delaware-based “Public Benefit Corporation,” sometimes mislabeled a “B Corp.”
What does that mean?
A public benefit corporation (or “benefit corporation”) is commonly described as the combination of for-profit and nonprofit. While we operate as a for-profit entity, structured like a C-corp, we pursue a social justice mission in all of our work. We do not receive tax benefits, but we are able to lead our company with a different legal structure, in relation to the maximization of profit for our shareholders.
Whereas traditional corporations’ directors have the topmost priority of maximizing profit for shareholders (with legal processes in place that allow the removal of directors who fail do so), a benefit corporation allows the directors to balance profit with mission. This means the directors have more freedoms to make the decisions that will guide their company and influence their social impact, while maintaining sustainable funding for a social justice mission.
Rmdy is guided by the core principals of “conscious capitalism”: 1) Conscious Leadership; 2) Stakeholder Involvement and Orientation; 3) Conscious Culture; and 4) Pursuit of a Higher Purpose.
What’s the difference between a benefit corporation and a B Corp?
Indeed, this slightly confusing separation is important to clarify. A “benefit corporation,” a type of corporate entity, authorized by 30 states and the District of Columbia, is not to be confused with “B Corp,” a type of achievement or certification of corporations.
Like the LEED certification for buildings which reach certain standards of resource-efficiency (“green” buildings) or the fair trade certification for agricultural products, a B Corp is a certification awarded to companies which reach certain standards of social justice impact. It’s awarded by the nonprofit “B Lab” to corporations that meet “rigorous standards of social and environmental performance, accountability, and transparency.”
For more information on B Corp certifications, check out the B Lab’s site.