Happy New Year!
The New York State Legislature got 2012 off to a great start when they passed a new law at the end of 2011. On December 12, Governor Cuomo signed legislation which creates a new class of corporations in New York. These new corporations, called “benefit corporations,” will benefit companies who purpose is to create a benefit not just for shareholders, but also for the community at large. The general public benefit purpose is defined as a material, positive impact on society and the environment, as measured by a third-party standard, through activities that promote a combination of specific public benefits. You can read the precise language of the legislation here. In order for a company to become a benefit corporation it must apply through the state and publish an annual public report that shows its performance in social and environmental areas. This legislation clears the way for many social entrepreneurs already in existence to receive benefits for caring about both the company’s bottom line and society as a whole.
In short, I think this new law is a great way to begin 2012 and I am excited to see what the new companies that form under this legislation accomplish!