Benefit Corporation Statutes

A New Economy is emerging that requires new market infrastructure to grow.  Corporate leaders need to be able to shape business models that enable them to satisfy the demands of investors, employees, and customers who increasingly demand that corporations serve both shareholders and society, considering the impact of their decisions on multiple stakeholders rather than maintaining a singular focus on short-term financial maximization.

Unfortunately, this New Economy is struggling with corporate laws made to support the Old Economy, including laws that force corporate leaders to put profits before people.  A Benefit Corporation Bill in your state would leave these old forms intact for those who want them, but it would create a new option without impacting the state budget that:

  • Removes legal impediments preventing businesses and investors from making their own decisions to use sustainability and social innovation as competitive advantages; 
  • Legitimizes and accelerates development of a New Economy by providing legal recognition for businesses that adopt higher standards of corporate purpose, accountability, and transparency;
  • Rebuilds public trust in business by demonstrating that businesses are willing to be held accountable to create value for both shareholders and society;

The American Sustainable Business Council, along with our partner B Lab, encourages you to take a moment to send a letter to your legislators supporting the enactment of this legislation by simply filling in the form below.  We’ll deliver your letter and add your name to our growing list of business and community leaders who are supporting this effort.

For additional information, see:

Send a letter to your state legislator on your letterhead (download available). IMMEDIATE ACTION IS NEEDED IN THE FOLLOWING STATES (find out who represents you in your state legislature by entering your ZIP code in the top bar): 

Sign the Petition below, and we will forward it to your legislator.

 

Dear Legislator,

As a business leader in your community, I am writing to express our support for Benefit Corporation legislation and to ask you to support it as well. A Benefit Corporation is a new corporate entity offering entrepreneurs and investors the option to build and invest in businesses that meet higher standards of corporate purpose, accountability, and transparency.

In a traditional corporation, fiduciary duty focuses on increasing shareholder profits. In the case of Benefit Corporations, fiduciary duty is redefined by stating that the creation of public benefit is in the best interests of the Benefit Corporation. This allows corporate officers to define other goals beyond just making a profit and then gives investors the power to require those officers to make decisions that reflect those goals, even when they lower profitability.

Our organization believes Benefit Corporations will bring considerable social and environmental improvements to our State. We believe the Benefit Corporation Bill will also bring significant investment into the economy of the state as well. A “new economy” is blossoming across the country made up of businesses that are finding ways to do well while helping our environment and society at large. States that welcome these new businesses will be poised for growth. Please don’t let our state be left behind.

Please support Benefit Corporation legislation.

Sincerely,
The undersigned
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