Benefit Corporations: Why Do Some US States, But Not Others, Have Legislation?

Benefit corporations are an interesting new (or mostly new) type of business entity, one with a dual public and private mission. Many people find such organizations extremely attractive. Some even think they are the “way of the future.” The blog entry below explains the results of a new scholarly paper looking at why it is that some U.S. states have passed legislation specifically to enable the creation of benefit corporations, while others have not. >>>

LINK: Why aren’t there benefit corporations everywhere?

Social hybrid organizations mix characteristics of non-profit and for-profit organizations, and are receiving increased attention from management scholars and practitioners.

A hybrid organization can be identified informally, based on an assessment of the organization’s practices, or it can be recognized more formally such as through third-party certification (e.g., B-Corps) or legal incorporation (e.g., Social Purpose Corporations, Benefit Corporations). Both certifications and legal forms are interesting in that they help to delineate a unique space for organizations that exhibit social hybrid characteristics….

What do you think?

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