28 Mar '12, 8am

The Gravitational Force of Social Entrepreneurship

The Gravitational Force of Social Entrepreneurship

The push to pass legislation establishing Benefit Corporations was largely fueled by B Lab , a non-profit 501(c)(3) established in 2006 that advocated for companies to take the environment, community, employees and suppliers into account in their decision making. B Lab created a certification and auditing scheme that companies could follow to become a “certified B Corporation.” In the eyes of the law, however, this designation was meaningless. Shareholders could still sue corporate directors for failing to put shareholder returns above all else. Early B Lab adopters would go through the arduous process of amending their corporate charters to include these additional stakeholders in an attempt to shield corporate directors from lawsuits, but it wasn’t until Social Benefit Corporations were ratified under law that directors truly received the protections they sought. The pio...

Full article: http://www.triplepundit.com/2012/03/gravitational-force-s...

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