Virginia’s approval of this so-called “B-Corp” status allows company officers, directors and board members the opportunity to impact more than just shareholders’ bottom lines and to have a wider impact on society. Shareholders are also empowered to further the B-Corporation’s cause by bringing proceedings against the company’s leadership for failing to further the company’s focus on the identified benefit. Registered Virginia corporations even have the option to convert to a B-Corporation from a traditional corporation. Virginia is making efforts to highlight this new business classification to draw companies to the Commonwealth.
Katie Lipp is an attorney at the Washington, DC regional business law firm Berenzweig Leonard, LLP. She can be reached at KLipp@BerenzweigLaw.com.