Impact Insights
Impact GC Glossary
The legal landscape for mission-driven businesses has its own distinct language. This glossary defines the terms that matter most to the companies and organizations we serve.
Corporate Structures & Governance
B Corp (Certified B Corporation):
A company that has been certified by B Lab, an independent certification organization, as meeting specified standards of social and environmental performance, accountability, and transparency. Certification is voluntary and must generally be renewed every three years.
Benefit Corporation / Public Benefit Corporation (PBC):
A for-profit corporate form authorized under the laws of many U.S. states that permits — and in some jurisdictions requires — directors to consider specified public benefits and stakeholder interests alongside shareholder value in corporate decision-making.
Benefit LLC:
A limited liability company formed to pursue both profit and one or more stated social, environmental, or public benefit purposes. Benefit LLC structures typically incorporate mission protections, stakeholder considerations, and impact-oriented governance provisions into the company’s operating agreement. Availability varies by state.
Triple Bottom Line (People, Planet, Profit):
A business and reporting framework that evaluates organizational performance across three dimensions: financial results, social impact, and environmental sustainability.
Legal Services Models
Fractional General Counsel:
An experienced attorney who provides ongoing legal and strategic counsel to a company on a part-time or embedded basis, often pursuant to a recurring monthly arrangement, while functioning similarly to an in-house general counsel.
Outside General Counsel:
A law firm or external attorney engaged to advise a company on its legal matters without serving as an employee or internal legal department. Outside general counsel relationships may be ongoing or matter-specific and are commonly structured on an hourly, fixed-fee, or retainer basis.
Impact & Sustainability Concepts
ESG (Environmental, Social, and Governance):
A framework used by investors, lenders, regulators, and other stakeholders to assess a company’s management of environmental, social, and governance risks and opportunities.
- Environmental: Issues relating to a company’s environmental footprint and resource management, including emissions, energy use, climate risk, waste, and water usage.
- Social: Issues relating to a company’s relationship with employees, customers, suppliers, and communities, including labor practices, workplace safety, diversity, human rights, and community impact.
- Governance: Issues relating to corporate oversight and accountability, including board composition, executive compensation, ethics, compliance, transparency, and anti-corruption practices.
Impact investing:
An investment approach that seeks to generate measurable social or environmental impact alongside financial returns. Impact investments may target market-rate returns, concessionary returns, or a combination of financial and mission-oriented objectives.
Greenwashing:
The practice of making misleading, overstated, or unsupported claims regarding a company’s environmental practices, sustainability efforts, or social impact in marketing materials, public statements, disclosures, or investor communications.
Mission-driven business:
A business organization that operates with a defined social, environmental, or community-oriented purpose in addition to a financial objective. Mission-driven businesses may include social enterprises, impact companies, benefit corporations, nonprofits with earned revenue activities, and other purpose-oriented ventures.
