Benefit Corporations

Topics: Corporation, Social responsibility, Corporate social responsibility Pages: 3 (798 words) Published: October 1, 2011
B Corporations
Benefit Corporations, also known as B corps, are a new way to do business in a socially responsible way. Curtis Lum’s article, “Legislation would allow for creation of ‘B corps’” published on March 18, 2011 in the Pacific Business News, talks about the ongoing legislative battle to legally recognize B corps in Hawai’i. An additional article from the PBN, published the same day by John Webster, “Social responsibility is beginning to take root,” provides further background to Lum’s article and b corporations. The Indiana Business Review published an article in its spring issue this year called “The Triple Bottom Line: What Is It and How Does It Work?” which talks about an important aspect to b corps and how the triple-bottom line impacts and revolutionizes financial reporting for sustainable business corporations. "Mobile Accord and Subsidiary mGive Announce New B Corporation Status" is an article published February 20, 2011 in The Pak Banker discusses what B corps are and what is good about them. Benefit Corporations are an important up and coming type of corporation because they provide a new-fangled model for how businesses can be different in this day and age by incorporating the non-financial aspects like social and environmental responsibility in their decision-making. The most fundamental change in this new form of business is its legal structure which breaks from the traditional rules and legal structure of profitable corporation to exclusively maximize shareholder value. Instead, b corps operate under a new set of rules to create both social and shareholder value simultaneously (Webster). Unlike a regular corporation’s where directors are shackled to maximizing profits for the benefit of its shareholders, in a B corp directors are set free of that rule is changed and the directors are free have an obligation to consider the interests of other constituencies beyond just the shareholder (Lum). B corps are a better form of business because...
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