Over the last few years there has been a shift in the core ideas of business with respect to corporate responsibility. A new type of business classification called benefit corporations is gaining popularity in the United States. Benefit corporations are required to have a positive impact on society and the planet, and to meet a higher level of accountability and transparency. However, will benefit corporations truly change the industry and world positively? This article provides for skepticism about the positive affects benefit corporations are purported to have on business. One reason is that benefit corporations are completely voluntary; thus, the corporations in most need of change and oversight are not likely to opt-in. The motivation behind benefit corporations is a step in the right direction; however, in order to effect real change in corporate responsibility, the law needs to be bolder.
Business Organizations Law
- Journal title
Emory Corporate Governance and Accountability Review
- Date submitted
8 September 2022