A heartening development in corporate law, that allows corporations to be more responsible, not just talk about it. Via ChicagoREgen.com…
Maryland and Vermont have passed Benefit Corporation legislation with similar legislation on the table in Colorado, Hawaii, New Jersey, New York, North Carolina, Pennsylvania and Virginia. In these states, Benefit Corporations, unlike traditional corporations, must by law create a material positive impact on society; consider how decisions affect employees, community and the environment; and publicly report their social and environmental performance using established third-party standards.
From a company’s point of view, the new law empowers directors of Benefit Corporations to consider employees, community and the environment in addition to shareholder value when they make operating and liquidity decisions. And, it offers them legal protection for those considerations.