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| Nicole Fielder Class of 2019 |
Over the past two years, I have been working to promote social enterprise as a new way of thinking and of doing business in Kentucky. Social enterprise is a burgeoning market sector that combines the sustainability of a traditional corporation with the mission of a nonprofit. They pursue a triple-bottom-line; they maximize profit plus social and environmental benefit. They leverage the for-profit model to provide higher quality wages, programs, and support to their employees and community. These businesses manifest themselves in many ways, but all do more than just writing checks as they purposefully impact those around them.
In Kentucky, social enterprises can take two forms: Certified Benefit Corporations (B-Corps) and Public Benefit Corporations (PBCs). To achieve B-Corp certification, a company must go through a rigorous assessment process facilitated by a third-party international nonprofit called B Lab and complete biannual reports to maintain their status. It’s an intense process that I got to see firsthand as I walked through it with MobileServe, a Louisville-based tech start-up. The only thing missing from the B-Corp certification is legal protection, which is where PBCs come in. Since Governor Bevin signed legislation in 2017, a corporation can now file with the Secretary of State’s office as a Public Benefit Corporation. This ensures that their civic mission is inscribed in their governing documents, and both shareholders and stakeholders are legally protected so long as the entity endures. I got to be part of that policy-making process last spring when I interned in Frankfort. It was almost surreal to witness our state joining the ranks with thirty-two others as we codified our commitment to social and economic innovation.
As of January 2018, there were five Certified Benefit Corporations and six Public Benefit Corporations in the state. Awareness is growing, but there is still more to be done. Now, I’m working to start a nonprofit business association for these social enterprises. The Kentucky Public Benefit Corporation Association -- newly branded as “Canopy” -- seeks to support and generate social entrepreneurial growth. Its focus is statewide because Louisville is not the only place that needs development. Studies from around the world show that social enterprise is one of the only sustainable economic solutions to poverty in rural communities. Kentucky has a lot of need, and our organization is trying to lean into it with these innovative tools.
Social enterprise and its derivatives tap into the potential of the private sector and challenges it to do good and be better. If you watched any SuperBowl commercials this year, you might have noticed how many showcased social missions. Companies are catching on to the demand for community engagement beyond the marketplace. There is a call to something higher. By taking such progressive steps, Kentucky is heeding that call and moving towards the forefront of the social enterprise movement. Our momentum continues to build, and I’m excited to see all the ways benefit corporations will help Kentucky flourish in the years to come.
Nicole Fielder, of Nicholasville, Ky., is a junior studying political science and economics.