Statement of Benefit - 2019
Coastside Newsgroup, Inc.
Pursuant to the Bylaws of Coastside News Group, Inc. (CNGI) the owner of The Half Moon Bay Review , this statement of benefit has been produced by the Chief Financial Officer (Richard Klein) and approved by the Board of Directors for publication. This report will first list the reporting commitment (from our bylaws) in italics, and will then provide the requested information (in normal typeface).
Article V - ANNUAL BENEFIT REPORT
Section 5.1 Selection of Third Party Standard.
Each year, the board of directors shall select a third party standard for use in preparing the annual benefit report. The third party standard shall be a recognized standard for defining, reporting and assessing general public benefit that is developed by a person or organization that is independent of the Corporation, and transparent because the following information about the standard is publicly available:
a) The factors considered when measuring the performance of a business;
b) The relative weightings of those factors; and
c) The identity of the persons who developed the standard and control changes to the standard and the process by which those changes are made.
The third-party standard used is the B-Impact Assessment, a free and confidential tool developed by B Lab and the Community of Certified B Corporations, which documents its factors, relative weightings, and developers at https://bimpactassessment.net/
Section 5.2 Preparation of Annual Benefit Report.
a) The Chief Financial Officer shall prepare, or cause to be prepared, the annual benefit report which shall contain a narrative description of:
i. the process and rationale for selecting the third party standard used to prepare the benefit report;
The B Impact Assessment was selected because it is the most widely available assessment available for Benefit Corporations. It is well-documented and would be the basis for a possible future endorsement of CNGI as a B Corporation. The assessment is also available for free, which keeps compliance costs low, an important consideration for any business, small or large.
ii. the ways in which the Corporation pursued general public benefit during the year and the extent to which general public benefit was created;
The company continued its award-winning high-quality journalism, which has been a cornerstone of the Coastside commmunity for over 100 years.
iii. the ways in which the Corporation pursued its specific public benefit as set forth in its Articles of Incorporation, which consists of promoting and enhancing independent local journalism and community involvement and the extent to which that specific public benefit was created;
The company is committed to robust and independent local journalism on the San Mateo Coastside. By acquiring the newspaper from its former non-local owner, the company has allowed that mission to continue, and the company has moved to provide the financial resources and expertise needed to create the sound foundation required to hire reporters, editors, and support staff needed to provide quality journalism.
iv. any circumstances that have hindered the creation by the Corporation of general or specific public benefit.
The community has actively encouraged the aims of the company, and there have been no hindrances.
b) The annual report shall also include:
i. an assessment of the overall social and environmental performance of the Corporation, prepared in accordance with a third-party standard applied consistently with any application of that standard in prior annual benefit reports or accompanied by an explanation of the reasons for any inconsistent application;
The overall social and environmental performance of the corporation has been excellent, as is reflected in the overall assessment score of 94.4 on a scale where 80 is required for B Corporations. Our biggest impact is on our customers, who receive high-quality journalism through paid print subscriptions, free print versions distributed to schools, and paid or free online subscriptions. We have also had a big impact on the staff of the paper, who now have much more secure positions with better benefits. This also increases our ability to attract top talent for our customers. We have implemented a governance structure and community stakeholder involvement that rank highly based on the B-Impact metrics.
ii. the name of each person that owns five percent (5%) or more of the outstanding shares of the corporation either beneficially, to the extent known to the Corporation without independent investigation, or of record;
These persons own 5% or more of CNGI: Leonard Thomas Mendonca and Richard Klein.
iii. a statement by the board of directors indicating whether, in the opinion of the board of directors, the Corporation failed to pursue its general, and any specific, public benefit purpose in all material respects during the period covered by the report;
The Board of Directors feels that the Corporation succeeded in all material respects to pursue its public benefit purposes.
iv. a statement of any connection between the entity that established the third-party standard, or its directors, officers, or material owners, and the Corporation, or its directors, officers and material owners, including any financial or governance relationship that might materially affect the credibility of the objective assessment of the third-party standard;
There are no known connections between BImpact and CNGI.
Section 5.3 Delivery of Annual Benefit Report.
The Corporation shall deliver the annual benefit report to its shareholders of record within one hundred twenty (120) days after the close of the Corporation's fiscal year or at the same time that the Corporation delivers any other annual report to its shareholders. The Corporation shall post all of its benefit reports on the public portion of its Internet Web site, if any, except that the compensation paid to directors and any financial or proprietary information included in the benefit report may be omitted from the benefit report as posted on the Internet Web site.
This report will be available at https://www.hmbreview.com/about
Prepared by Richard Klein, Chief Financial Officer
Approved by the Board of Directors 10/28/2020