Benefit Corporation Legislation
Tens of thousands of companies are integrating sustainability and social innovation into their business models. A New Economy is emerging that requires new market infrastructure to grow. Corporate leaders need to be able to shape business models that enable them to satisfy the demands of investors, employees and customers who increasingly demand that corporations serve both shareholders and society, considering the impact of their decisions on multiple stakeholders rather than maintaining a singular focus on short term financial maximization.
Unfortunately, this New Economy is struggling with corporate laws made to support the Old Economy, including laws that force corporate leaders to put profits before people in order to fulfill their fiduciary duties. The Benefit Corporation Bill would leave these old forms intact for those who want them, but it would create a new option without impacting the state budget that:
• Removes legal impediments preventing businesses and investors from making their own decisions to use sustainability and social innovation as a competitive advantage, particularly in liquidity scenarios;
• Legitimizes and accelerates development of a New Economy in New York by providing legal recognition for businesses that adopt higher standards of corporate purpose, accountability, and transparency;
• Rebuilds public trust in business by demonstrating that businesses are willing to be held accountable to create value for both shareholders and society;
• Serves as a platform for policymakers to provide in the future a variety of tailored tax, procurement, and investment incentives for private sector businesses addressing public benefit objectives.
Please join the growing list of business and community leaders who are supporting this effort.
1. Sign the petition: http://org2.democracyinaction.org/o/6269/p/dia/action/public/?action_KEY=3371
2. Please call Assemblyman Sheldon Silver's Office: 518-455-3791. You don't have to be in his district because this is for the Assembly as a whole, but it will help if you are in his district. Urge him to have another meeting of the Corporation Committee for the Benefit Corporation Legislation A11498 (same as S7855) and get it to the floor, so the Assembly can vote on it.
