Benefit Corporations

Jun 16, 2011

dictionary-150What are Benefit Corporations?

A benefit corporation is a public corporation chartered by a state designed to perform some public benefit.

What's the significance?

In the wake of the financial crash and a slow recovery, many argue that a new economy requires a new kind of corporation. The idea of benefit corporation has been introduced to address the increasing gulf between the pursuit of private profit and the public good. These corporations are gaining popularity rapidly. Maryland became the first state to pass Benefit Corp legislation in April 2010. Vermont followed in May. Seven other states are interested for 2011. Benefit Corporations are a new class of corporation that is required to create a material positive impact on society and the environment and to meet higher standards of accountability and transparency within the government.

Who's talking about it?

A recently published article in the New York Public Personnel Law describes a case heard by the Supreme Court ruling stating that all Public Benefit Corporations are subject to the Open Meetings Law and the Freedom of Information Law as long as they remain public entities... Dan Cooper and Andrew Delmonte highlight a New York B Corporation reaching the Senate Floor... The Nation discusses the Rise of Benefit Corporations... Susan Adams of Forbes Magazine notes Corporate Responsibility in relation to Benefit Corporations.

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