Board of Supervisors President David Chiu introduced legislation Tuesday that would give preferences to more socially responsible companies for bids on city contracts. Chiu said it was important to send the message to these types of businesses that “we are open for business.”
The City is allowed to show preference to these so called Benefit Corporations, or B Corps, under a recently passed state law. The law defines these kinds of businesses as those who have policies that “create a material positive impact on society and the environment” and who make decisions not based on profit alone but also for the interests of workers, the community and the environment. There are over 500 B Corporations in 60 different industries throughout the nation.
Benefit corporations create value for shareholders and society at the same time.
“These are exactly the types of companies that we need to be encouraging and rewarding in San Francisco,” Chiu said. “San Francisco is known as an international leader in sustainability, economic innovation, and social entrepreneurialism. This first-of-its-kind proposal to provide City contracting preferences to B Corporations reaffirms our City’s leadership.”