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Benefit Corporation Legislation

United States of America Current 2012

This State legislation authorizes the organization of Benefit Corporations. A benefit corporation is a traditional corporation with modified obligations committing it to higher standards of purpose, accountability and transparency.

Issuer name

States

Issuer notes

Local Government

Government ministry

Other

More information

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 2016, the Benefit Corporation legislation had been passed in 31 States (see notes) and was introduced in at least 7 States.

Organizations covered by the instrument

All Companies

Target organization notes

For-profit corporate entity (of any size) that includes positive impact on society, workers, the community and the environment in addition to profit as its legally defined goals.

Industry scope

All/none specified

Disclosure venue

NA

ESG coverage- G (Governance)

Structure & Leadership

Status

Current

Country

United States of America

Region

North America

Date of publication

2012

Issuer type

Governments (governmental department, agency)

Reporting requirements

Public law and regulation

Mandatory or voluntary

Voluntary

The geographical scope

Sub-national

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