Importance of Benefit Corporations

In the United States, directors of for-profit companies are required to act solely for the ultimate purpose of maximizing the financial returns to shareholders. While corporations generally have the ability to engage in any legal activities, including those that are socially responsible, corporate decision-making must be justified in terms of creating shareholder value. Mission driven and other socially conscious businesses; impact investors and social entrepreneurs are constrained by this inflexible legal framework that does not accommodate for-profit entities whose mission and impact is central to their business model. Thus, Benefit Corporations are designed to fill this void, and allow mission aligned for-profit businesses to consider all of their major stakeholders in addition to their shareholders. 

Want to learn more about Benefit Corporations? See our website (http://benefitcorp.net) for more information. 

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