What is the most correct statement about benefit corporations (B corporations)?

Benefit corporations, or B corporations, are designed to balance profit-making goals with social and environmental responsibility. The most accurate statement about them is that they allow corporate boards to sacrifice shareholder value for the greater good. This reflects the core principle of benefit corporations, which is to create a positive impact on society and the environment, alongside pursuing profitability.

Unlike traditional corporations that are primarily focused on maximizing shareholder value, B corporations have a legal framework that permits them to consider the interests of other stakeholders, such as employees, community, and the environment. This means that if a decision may not yield immediate financial benefits but contributes positively to society, the board of a B corporation can prioritize that outcome without the fear of legal repercussions that might exist in a traditional corporate structure.

The other choices do not accurately depict the nature of B corporations. They do not prioritize profit over social goals, as their structure is intended to enable a dual focus. They are not the same as non-profit organizations because they can still earn profits and distribute dividends to shareholders while maintaining their commitment to social and environmental causes. Lastly, B corporations are subject to specific reporting and transparency standards but do not operate under the same strict government regulations as non-profits, since they still function within the profit-making sector.