Socially responsible companies will be given preferential treatment when doing business with San Francisco after the unanimous approval of new legislation by the Board of Supervisors on Tuesday.
Such so-called benefit corporations, or B Corps, will now have a leg up in The City’s contract bidding processes by having their final ratings given a 4 percent cost leeway compared to other applicants. The proposal, put forth by Supervisor David Chiu, originally involved an 8 percent adjustment.
Other compromises included providing the same benefits to companies from surrounding counties or Sacramento, and exempting the measures if a local business would be prevented from winning a bid.
B Corps are loosely defined as companies that “create a material positive impact on society and the environment,” and base decisions not on profit alone, but also the well-being of workers and the surrounding community. Such companies are certified by the state. Some 21 California companies currently have the designation.
San Francisco is allowed to give preference to B Corps after state legislation that passed in January.