As a business leader in the great state of Illinois, I am writing to express my support for SB2897 (Frerichs) and HB4708 (Feigenholtz), the Benefit Corporation Act, 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 exclusively 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.
We believe Benefit Corporations will bring considerable social and environmental improvements to Illinois and that the Benefit Corporation Act will 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 allow Illinois to be left behind.
Please support SB2897 (Frerichs) and HB4708 (Feigenholtz), the Benefit Corporation Act.