International Journal of Business, Management and Commerce (IJBMC)

Benefit Corporation legislation, of some form, has been passed in 33 states and Washington D.C. as of July 2017 and seven more states have pending legislation (Benefit Corporation, 2017; Ohio, 2016). Benefit Corporations must create a “general public benefit,” and answer to shareholders while decisions based on society or environment, rather than solely on profit, are legally protected (Alpern, 2015). The Benefit Corporation’s legal and performance standards help ensure market growth, valuation, impact, and integrity (Neubauer, 2016). This paper examines the evolution of Benefit Corporations and some of the legal differences between traditional for- profit corporations including related court cases. The authors provide a business rationale in support of the responsible corporate actions and ethical implications of conscientious for-profit organizations. How a company can become a Benefit Corporation and the value added to major companies that have embraced changes of certification or incorporation will be discussed.