For Tom Kelly, president of Neil Kelly Co., having his home-remodeling business meet environmental and social standards is just as important as meeting the bottom line.

So when House Bill 2296 went into effect Jan. 2, the Portland-based company with a Bend design center became one of 29 businesses to register as a benefit company with the Oregon Secretary of State.

“So there’s been legislation that allows a company like ours to become a B Corp, legally, technically in the state of Oregon,” Kelly said in a video, “which is basically saying, besides being a corporation that’s committed to making a profit that you’re also a corporation that is committed to the community and committed to the environment.”

Oregon joined 20 states and the District of Columbia in passing benefit company legislation.

The law changes how businesses can be structured and registered with the state, said Tony Green, communications director for the Oregon Secretary of State. Becoming a benefit company does not change a business’ entity type. However, it differs from a traditional corporation or limited liability company with regard to its purpose, accountability and transparency, the Secretary of State website states. A benefit company considers its impact on society and the environment, in addition to profit, in the business decision-making process.

“The main reason companies are doing it is because they want to let people know they are bringing their personal values to their business,” Green said. “It’s a way to indicate to their customers that they are a different kind of company, that they operate certainly towards profit, but a public benefit as well.”

Registering as a benefit company may also provide legal protection from shareholder lawsuits, he said. For example, a shareholder can’t sue a benefit company for investing in projects that benefit workers and the planet but may reduce profits.

The law requires benefit companies to annually report what actions they’ve taken to provide a general public benefit and assess whether they’ve met a third-party standard

B Lab, a Pennsylvania-based nonprofit, is one of those third parties. It provides certification for benefit corporations separate from state registration.

Neil Kelly Co. has achieved certification through B Lab.

“We’re a 67-year old company, and I’m obviously starting to think about the next generation coming into the business and taking over the business,” Kelly said in the video. “And this is really a way for us to formalize our values in our corporate documents.”

—Reporter: 541-617-7818,

rrees@bendbulletin.com