When Money isn’t Enough: Inc or PBC?
by Miki Saxon
I first mentioned Public-benefit company (PBC) as a viable alternative to the typical Inc corporate structure in 2015, especially for entrepreneurs with an eye on more than money.
The next year I expanded on that when Kickstarter changed its legal status to PBC.
Don’t confuse PBCs with B-corps; both are profit-making entities and both have stated values, but PBCs are legal entities and legally held to their specified values and mission.
“A value is only a value if it’s non-negotiable.” –Kickstarter co-founder Perry Chen
PBCs come in all sizes, both public and private. The variety is obvious in this list of the Top 25 PBCs globally in 2016, including
Method Products, Patagonia, Etsy, Toms, Clif Bar and now Danone.
What is Danone?
Danone is a French multinational food-products corporation based in Paris and founded 99 years ago in Barcelona, Spain. The company is listed on Euronext Paris where it is a component of the CAC 40 stock market index.
Danone is present in over 130 markets and generated sales of €21.9 billion in 2016, with more than half in emerging countries. In 2015, fresh dairy products represented 50% of the group’s total sales, early life nutrition 22%, water 21% and medical nutrition 7%.
Some wonder how/why large, public companies would even consider a legal status that doesn’t put shareholder interest first.
Emmanuel Faber, Danone Chairman & CEO , explains.
The reason I am writing is because this new major milestone is a breakthrough point for Danone on our global B Corp roadmap. With our major North American activities being certified as of today, it is now proven that it is possible to certify as a B Corp for large organizations that are committed to being change agents, for business and for the world we live in.
Obviously, if a company with such far flung parts can do it shoots holes in those who claim it’s not possible.
And before you claim that startups can’t spend time/resources on stuff like this, remember that Marc Benioff implemented his 1/1/1 philanthropic model when he founded Salesforce in 1999 and that certainly hasn’t slowed its growth.
These days, the definition of success involves more than just money.
Image credit: Danone via Wikipedia
