13 Oct '11, 7am

California Creates Two New Classes of Corporation to Empower Social Entrepreneurs | Care2 Causes

Even as Wall Street is being occupied and corporations are reviled, there is a revolution quietly raging across the country that empowers corporations to be a strong force for good. This week, California joined that revolution when Governor Jerry Brown created two new classes of corporations for businesses that seek to pursue both profit and purpose: Benefit Corporations and Flexible Purpose Corporations. These new legal structures are revolutionary in two ways. First, they broaden the duty of a company beyond maximizing shareholder value to include maximizing stakeholder value, such as operating the business in an environmental and social responsible manner. Second, they increase transparency and accountability. Though it is the first state to pass the Flexible Purpose Corporation type, California is the sixth state to approve the Benefit Corporation classification. Here ...

Full article: http://www.care2.com/causes/california-creates-two-new-cl...

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