Etsy IPO is test of corporate governance for B Corp firms

New York

THE online craft bazaar Etsy made its debut on the Nasdaq stock market on Thursday, signalling the birth of an unusual public corporation - and not just because its employees carry around compost on bicycles, or because its regulatory filings are peppered with phrases such as "We keep it real, always."

Etsy is a certified Benefit Corporation, or B Corp, one of a growing number of companies that pledge to adhere to social and environmental accountability guidelines set by a non-profit organisation called B Lab. And Etsy on Thursday became only the second for-profit company to go public out of more than 1,000 companies with that certification.

Etsy shares closed on Thursday at US$30 a share, almost twice their initial public offering (IPO) price, in one of the m…