There are currently 2,902 Benefit Corporations
in the United States and 1,462 Certified B Corps(TM) in the world.
Delaware--arguably the most influential state in the nation when it comes to corporate law--joined the bandwagon last September when it passed legislation to create what it calls "public benefit corporations
are distinct from nonprofit entities in that they are permitted to operate for profit and are not eligible for tax-exempt status.
relevance to State agencies and public benefit corporations
engaged in construction or
are required to have a purpose of creating "general public benefit" and are permitted to identify one or more "specific public benefit" purposes.
are taxed like traditional corporations, but are protected from potential shareholder lawsuits claiming they failed to maximize profits.
Legislation that would provide incentives for Benefit Corporations
pursuing city contracts in San Francisco, Calif.
In addition to the interests of shareholders, directors of benefit corporations
must consider the effects of their actions on (1) other "stakeholders," such as employees, suppliers, customers and the community, (2) the environment, (3) the short-and long-term interests of the benefit corporation
, and (4) the ability of the benefit corporation
to accomplish its general, and any specific, public benefit purpose.
The new Procurement Lobbying Law is applicable to any attempt to influence contract awards once a procurement process has been commenced by any state agency (departments, boards, bureaus, commissions, divisions, offices, councils, committees and officers of the state including those which are temporary), NYS Senate and Assembly, Public Authorities, Public Benefit Corporations
, Industrial Development Agencies and Local Benefit Corporations
Maryland, where Oliver-Grayson is organized, became the first state to authorize creation of Benefit Corporations
companies incorporated as Public Benefit Corporations
across 30 states and the District of Columbia.
Now, companies that choose to incorporate in New Jersey and who elect to be Benefit Corporations
will need to consider the effects of their decisions on the environment and society as a whole as well as how they affect shareholder wealth.