B corporations businesses are organizations that care as
much about society and the environment as they do about profits. It provides the legal framework for firms to meet
their social goals as a business entity.. To qualify as a B Corp, a firm must
have an explicit social or environmental mission and a legally binding
responsibility to take into account the interests of workers, the community and
the environment as well as shareholders.
A a new California law is designed to give businesses
greater freedom to pursue strategies which they believe benefit society. The
legislation takes place concurrent with a new law creating the flexible purpose
company (FlexC) which allows a firm to adopt a specific social or environmental
goal, rather than the broader obligations of a B Corp.
The organizations are ideal for individuals who
think that existing laws governing corporations and charities are too
restrictive and non-profits may have only few avenues to grow and raise revenue.
Similar laws are already in effect in Vermont, Maryland, New York, New Jersey, Virginia and Hawaii
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