Benefit Corporation

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Benefit Corporation

A corporation in which the members of board of directors have the statutory duty to provide some tangible benefit to the community and/or the environment. In other words, a benefit corporation is not prohibited from earning and distributing profits, but is expected to do these other things as well. A benefit corporation is informally called a b-corp.
References in periodicals archive ?
While the number of benefit corporations is expected to increase, some proponents of ESG argue that the existing corporate structure can--and should--incorporate ESG principles into their boardroom deliberations, on the basis that if it is good for society, or the planet, it must also be good for the corporation.
Smith didn't know much about benefit businesses, but a couple of his classmates at Wharton started a company called Warby Parker, and they told him about Benefit Corporations and Certified B Corps (benefit businesses certified by the non-profit B Lab), which drove him to consider the same structure for Cotopaxi.
OKLAHOMA CITY A new law providing for the formation of "benefit corporations" in Oklahoma will allow businesses to work not just on behalf of shareholders but also on behalf of people in need.
There are more than 7,000 benefit corporations in the U.S., a plurality of which are incorporated as Delaware PBCs, which must meet the highest standards of legal accountability.
This trend has spurred the creation of benefit corporations and certified B Corps--two similar, but distinct ways that business can signal to customers, employees and investors that they're looking to impact more than just the bottom line.
Eight Minnesota B Corporations are also registered as "public benefit corporations" a state designation given to for-profit companies that pledge to pursue a general or specific benefit to society under legislation that took effect in 2015.
Benefit corporations must have a purpose to create r a material positive impact on society and the environment under the MBCL.
This application is available for-profit businesses, not-for-profit corporations, business improvement districts, local development corporations, public benefit corporations, economic development organizations, research and academic institutions, incubators, technology parks, municipalities, counties, regional planning councils, tourist attractions and community facilities.
Benefit corporations" were created as a way to meet the demands of
Senator Catherine Cortez Masto (D-Nev.) released the following statement condemning todays vote in the House of Representatives to pass tax legislation that benefit corporations on the backs of middle class families: House Republicans have once again refused to engage with Democrats in a bipartisan process to reform our nations tax code.
Find an attorney well-versed in social enterprise, benefit corporations, and B Corps, and form partnerships with like-minded vendors and social entrepreneurs.
By January, two years after the law went into effect, there were 55 benefit corporations registered in New Hampshire.