The New "Benefit Corporation"

What is it?

A benefit corporation is a new class of corporation that is available in Maryland, Vermont, New Jersey, Virginia, Hawai'i and California. A benefit corporation is a for-profit corporation that includes in its corporate purposes the creation of a material positive impact on society and the environment. The leadership's fiduciary duties include a requirement to consider non-financial interests when making decisions.

Reporting Standards

A benefit corporation may use recognized standards such as the Global Reporting Initiative (GRI), Green America and B Lab to report on the corporation's social impact and sustainability practices. The leaders of the corporation decide for themselves which standards are most appropriate for the corporation to aspire to, and how they wish to report their progress.

Fiduciary Duties

The leaders of the corporation understand that their fiduciary duties include the pursuit of a material positive impact on society and the environment by the corporation. They are legally protected in considering the non-financial interests of their employees, the community and the environment when they make decisions on behalf of the corporation.

I'm interested. What's next?

If you are interested in establishing a benefit corporation for your business or converting your existing for-profit company into a benefit corporation, please contact Ellen Lubell at 617-969-9610 ext. 102 or ELubell@TLLawGroup.com.