Robin Hood, CEO?
February 28, 2011 2:58 PM Subscribe
Will shareholders want to invest in companies that don't have a laser-like focus on profit?"
posted by cybercoitus interruptus (37 comments total)
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"In one US state, they've just brought in a new law which protects companies who put social responsibility before making money [companies referred to as "benefit corporations"]. . . . Shareholders can't [sue] if the company takes decisions to, for example, protect the environment or buy locally, even if that hurts the bottom line
" [7:30 BBC audio report]. One way for entrepreneurs to walk the socially responsible walk is to get certification from B Lab
, a non-profit that issues trust marks [the "B Corporation" label] for entire companies, not just individual products
: "The B Corporation legal framework bakes your values into the DNA of the company
so they can better survive new management, new investors or even new ownership."
What is the difference between "benefit corporations" and "B Corporations"? Benefit corporations are generic
, recently developed legal entities
; "B Corporation" is a certification brand that B Lab has given to over 300 companies including business suppliers, law firms, service companies like Untours, and consumer product manufacturers like Dansko
and Numi Tea
But [is there] a demand side to this equation that [B Corporation doesn't] address and that the Benefit Corporation Laws won't address[?]