This State legislation authorizes the organization of “Benefit Corporations”. Benefit corporations 1) have a corporate purpose to create a material positive impact on society and the environment; 2) are required to consider the impact of their decisions not only on shareholders but also on workers, community, and the environment; and 3) are required to make available to the public an annual benefit report that assesses their overall social and environmental performance against a third party standard. As of March 2016, the Benefit Corporation legislation had been passed in 31 States and the District of Columbia. Legislation is pending review in at least 5 States.
Industry sectors covered by the instrument
Organizations covered by the instrument
Type of instrument
Mandatory or voluntary
The geographical scope