Becoming a Public Benefit Corporation: Express Your Values, Energize Stakeholders, Make the World a Better Place

The number of benefit corporations and public benefit corporations in the US has grown to over 10,000, including at least fifteen public companies. These organizations are legally authorized to pursue a mission in addition to profit, and they consider the impacts of their business on employees, customers, suppliers, the environment, and others. Benefit corporation status helps protect the company mission even when leadership changes, but some argue that enforcement mechanisms are too weak to prevent purpose washing. Becoming a Public Benefit Corporation provides guidance on how leaders and organizations can use this structure to make the world a better place.

Format: Unspecified
Length: 272 pages
Publication date: 21 November 2023
Publisher: Stanford University Press

The United States now boasts a thriving community of over 10,000 benefit corporations and public benefit corporations, with at least fifteen publicly traded entities. This comprehensive guide is designed to empower leaders, advisors, and board members in their pursuit of ethical business practices.
Entrepreneurs and leaders often harbor an inspiring vision for their businesses, aiming to create a positive impact on society alongside financial prosperity. In recent years, a novel legal structure has emerged to facilitate this ethical vision: the Benefit Corporation or Public Benefit Corporation. These organizations are legally authorized to prioritize their mission and values, ensuring that their business decisions align with their broader societal goals. Companies such as Patagonia, Kickstarter, Warby Parker, Danone North America, Allbirds, and King Arthur Baking have embraced the benefit corporation model to drive both their commercial success and their commitment to social responsibility.
Rather than solely focusing on maximizing profits, these benefit corporations take a holistic approach, considering the impacts of their operations on employees, customers, suppliers, the environment, and other stakeholders. Their mission goes beyond mere profit-making, seeking to foster a new, more humane, and sustainable form of capitalism. The benefit corporation status provides valuable protection for the company's mission, even in the face of leadership changes or external pressures from investors, shareholders, bankers, and lenders.
Becoming a Public Benefit Corporation offers a comprehensive exploration of this exciting new corporate form. It delves into when it makes sense for organizations to transition to this structure, as well as the benefits it can bring. Law professor and corporate governance expert Michael B. Dorff also provides insights into the weaknesses of benefit corporations, arguing that the current enforcement mechanisms need to be strengthened to prevent purpose washing. Through examples from top companies, the book showcases mission-driven leaders, board members, and advisors who are navigating the tradeoffs between profits and mission effectively.
By embracing the principles of benefit corporations, entrepreneurs and leaders can create a positive ripple effect in society, driving innovation, sustainability, and social progress. This guide serves as a valuable resource for those seeking to build businesses that not only generate financial returns but also make a meaningful difference in the world.

Dimension: 229 x 152 (mm)
ISBN-13: 9781503632806