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Firms with Benefits

Firms with Benefits
 

A new type of corporation, called a “Benefit Corporation” is beginning to gain serious momentum, and it’s about time. Six states have now passed laws legalizing these “B Corps” and many more are currently reviewing legislation. Benefit Corporations at their heart are essentially like any other company, except that they designate in their corporate charter an additional “bottom line” beyond profit. Some are working to save the environment, others pursuing faith-based causes, and still more are working to build communities through job creation and economic development initiatives. In addition to simply dedicating themselves to additional bottom lines, these new entities are also required to submit to a third-party audit.

More on this soon, but for now, check out these stories:

WSJ: With New Law, Profits Take a Back Seat

The Economist: B Corps – Firms With Benefits

 

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