Free Republic

the underlying premise of creating a "benefit corporation" is that traditional corporations and companies don't benefit the public. This notion, of course, is ludicrous. Over time, however, it would not be surprising if B-corporations begin to seek favored tax statuses as well.

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...