New law gives firms do-gooder status

Sacramento Bee ^ | 1/3/12 | Dale Kasler

[SmithL]

California has a new law officially designating corporate do-gooders.

Starting today, California businesses can incorporate as "benefit corporations," which allows them to work for the public good as well as their shareholders.

Current law generally requires California companies to put shareholder interests first. Companies that incorporate under the new law, AB 361, can look at a broader set of criteria when making financial decisions.

The effect is a kind of "safe harbor" for management. A company that wants to spend additional dollars on, say, environmental safeguards, would be given legal protection against lawsuits or other moves by angry shareholders.

"It gives some legal status to the (company's) social mission,"

[Opinionated Blowhard]

Anyone who invests in one of these needs to have their heads examined. And any of these that are set up will become cesspools of political influence and corruption.

[grumpygresh]

This is an old idea. It’s called ‘protection money’

[Noumenon]

Starting today, California businesses can incorporate as "benefit corporations," which allows them to work for the public good as well as their shareholders.

From being "allowed" to work for the "public good," it's a short step to being compulsory. And just who determines what the "public good" might be?

[Minn]

It’s amazing that corporations have ever done any good for anybody before without this category. But in the mind of a leftist, they haven’t. All they’ve done is provide for the material needs and desires of people that have no business having needs and desires.

[SmithL]

And just who determines what the "public good" might be?

I'm just guessing here, but I suspect that supporting the Boy Scouts doesn't count.

[M Kehoe]

...which allows them to work for the public good as well as their shareholders.

The links of chain are fashioned slowly, all with your well being in mind.

5.56mm

[Leep]

“...would be given legal protection against lawsuits or other moves by angry shareholders”

Its amazing that more than two people would think this is a good idea?

[Leep]

“...would be given legal protection against lawsuits or other moves by angry shareholders”

Its amazing that more than two people would think this is a good idea?

[dblshot]

Providing goods and services is working for the public good. What Morons.

[kosciusko51]

I think the problem here is that the laws are written by lawyers. Lawyers realize that they have to do pro bono publica work to hide the fact that they are the friction in the system, producing mostly nothing except paperwork.

Now, they are projecting their sins onto other companies (that are the gears and cogs in the system) this same notion they they do nothing of good except through pro bono publica.

[businessprofessor]

For benefit corporations, reporting on public good activities is compulsory. Although a corporation can choose its incorporation form, the CA rats undoubtedly have a scheme to encourage benefit corporation formation. For example, the rats could require state contracts to benefit corporations or provide contract preferences to benefit corporations. The rats could provide lower tax rates for benefit corporations. The rats probably have a bag of tricks to use benefit corporations to extend their power and enhance their major donor groups, particularly labor cartels, environmentalists, and government workers.

[haroldeveryman]

“...would be given legal protection against lawsuits or other moves by angry shareholders”

For example, shareholders of an energy company would be unable to vote out board members that want to acquire Solyndra ?

[TheOldLady]

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[Talisker]

Starting today, California businesses can incorporate as "benefit corporations," which allows them to work for the public good as well as their shareholders.

Crypto-nationalization, aided and abetted by your friendly useful idots, the liberals.