For a long time, corporations have been known for prioritizing profits over any social or environmental impact. However, in the last decade, we have seen a new type of corporation: benefit corporations.
Everything You Should Know About Benefit Corporations
These corporations prioritize both profits and positive social and environmental impact. In this blog, we’ll explore everything you need to know about benefit corporations, what they stand for, how they differ from traditional corporations, and the benefits they offer.
What is a Benefit Corporation?
A benefit corporation is a new type that differs from traditional corporations in that it is required to prioritize social and environmental impact in addition to profits. Benefit corporations have a legal requirement to impact society and the environment positively.
What do Benefit Corporations stand for?
Benefit corporations stand for the triple bottom line: people, planet, and profits. These corporations aim to create positive social and environmental impacts while being profitable.
They must meet specific standards, including transparency in meeting their goals and regularly reporting on progress.
How do they differ from Traditional Corporations?
Traditional corporations prioritize profits over any social or environmental impact. However, benefit corporations must consider the benefits they provide beyond just profits.
Boards of Directors of benefit corporations must consider the interests of all stakeholders, not just shareholders.
What are the benefits of investing in a Benefit Corporation?
Investing in a benefit corporation might be worth considering if you’re looking for a socially responsible investment that aligns with your values and generates financial returns.
Benefit corporations are legally required to prioritize social and environmental benefits and financial returns.
Investing in a benefit corporation supports a company committed to positively impacting society while pursuing profits.
In addition to making a social impact, investing in a benefit corporation may also be attractive financially.
Some studies have shown that sustainable and socially responsible companies outperform their peers in the long run. Investing in a benefit corporation could achieve financial and social returns.
What Type of Companies Qualify as Benefit Corporations?
Any company in the United States can become a benefit corporation. The prerequisites include creating a general benefit for society and a specific use, like reducing carbon emissions or providing jobs in underserved communities.
How’s the future of Benefit Corporations?
The future of benefit corporations looks bright. In 2010, there were only a few benefit corporations worldwide, but now, there are thousands.
More and more companies are adopting the triple-bottom-line business approach, leading to a global shift towards greater social, environmental, and economic justice.
As consumers demand more accountability and responsibility from businesses, we can expect more companies to pursue benefit corporation status.
Everything You Should Know About Benefit Corporations – In Conclusion
Benefit corporations represent a new generation prioritizing social and environmental impact and profits. By upholding their values, they can attract customers who share them, enhancing their reputation, growth, and revenue.
Benefit corporations also offer a new business way to put people and the planet first. Benefit corporations could become the norm as consumers demand more accountability and responsibility from companies.