The Benefit Corporation: Can Changes to Corporate Law Change Business As Usual?
Anna R. Kimbrell*
Abstract: This article is an introduction to Benefit Corporations, a new type of legal business form for businesses that are motivated to create social and environmental benefits as well as profits. This article explains the evolution of and need for a business form that is unrestrained by the wealth maximization norms of traditional corporations. It explains the main goals of Benefit Corporation legislation and its success thus far. Finally, the article discusses criticisms of the legislation and concludes that, although new and untested, Benefit Corporations have strong potential to create positive and lasting change by using the power of business to address social and environmental problems.
The last decade has been marked with corporate scandals. From Enron to the subprime mortgage crisis, the BP oil spill to the Massey Energy mine explosion, Americans have become increasingly disillusioned with corporations.[1] At a time when unemployment rates are high and many Americans are struggling to make ends meet, the mere mention of “corporate America” brings to mind images of Wall Street fat cats lining their pockets with the hard-earned money of the less wealthy. Protestors involved in the Occupy Wall Street movement brought home the frustration and discontent with the “business as usual” attitude as they took to the streets to speak out against the traditional corporate culture of profit above all else.[2] In the midst of growing dissatisfaction with traditional corporate maxims, one organization has been working hard to change the corporate landscape and prove that corporations can do good and also do well.
* Anna Kimbrell is a 2014 dual degree JD/MBA candidate at the University of Kansas.
