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Can you expand on why this a bad sign for B Corps more so then C Corps? Honest question. Before reading the link I did not know the difference between B and C.
by vanattab 11y ago
Can you expand on why this a bad sign for B Corps more so then C Corps? Honest question. Before reading the link I did not know the difference between B and C.
- Dwolb 11y agoA simple explanation is B-corps can have a charter which is at odds with the interests of shareholders while C-corps are fully aligned with 'maximizing shareholder value' e.g. "I've created a B-corp, named Betsy, which has the distinct mission of making it viable for more people to choose craftsmanship as a career. I cannot be sued for adhering to my charter in good faith so one thing I can offer all sellers is an insurance plan even if this move has a net negative impact on profit." This can be contrasted to a C-corp in which its officers could technically be sued by acting in ways which are value or profit-destroying for the firm.
- forgotpasswd3x 11y agoYour simple explanation still fails to prove that's why Etsy is losing so much value.
- SixSigma 11y agoFacebook seems to be doing ok
- theseatoms 11y agoI don't know the details of the Etsy's financial situation, so my initial comment seems a bit flippant, having re-read it. But regardless, Etsy was a high profile B corp IPO, so I expect people to draw conclusions from its success or failure regarding the viability of B corps in public equity markets. (Warby Parker and Patagonia are two other B corps.) After all, public companies are legally obligated to maximize shareholder value.