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And which investor, when put before the choice of supplying capital to a C-corp or a B-corp, will willingly choose the entity that admits having his ROI as a lo

by ovi256 11y ago

And which investor, when put before the choice of supplying capital to a C-corp or a B-corp, will willingly choose the entity that admits having his ROI as a lower priority than the other, all other things being equal ? By this logic, we could see B-corps in niches where capital is not a strategic advantage. The search for these niches is left as an exercise for the reader.

dev1n 11y ago
The public absolutely would invest if it meant these B-corp's have solid, steady, long term focused growth.
- hippich 11y ago
  or C-corps taxes more and international tax avoidance loopholes are closed. But i guess both of these would be hard to make happen
kingmanaz 11y ago
There are some funds which target such investors. For example, the Parnassus Endeavor fund: "The Parnassus Endeavor Fund normally invests at least 80% of its net assets(plus borrowings for investment purposes) in companies believed by the Fund’s investment adviser (Adviser) to provide good workplaces for their employees. Companies with good workplaces usually are able to recruit and retain better employees, and perform at a higher level than competitors in terms of innovation, productivity, customer loyalty and profitability. While no company is perfect, the Adviser makes a judgment as to which companies have good workplaces based on factors such as respectful and fair treatment of employees, employee satisfaction and engagement, pay and benefits, family-friendly policies, and support for volunteerism and philanthropy." Social investing as well as religious funds also put a higher priority on certain ethical criteria rather than overall profitability. The motive for investing in these funds depends on what one recognizes as their highest end.
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adenadel 11y ago
The investor who is more concerned with the public good than solely her own ROI.
st3v3r 11y ago
Amazon does this all the time, and yet their stock is doing ok. An investor who's looking beyond the next quarter will look more at a company than just ROI.
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by ovi256 11y ago

dev1n 11y ago

The public absolutely would invest if it meant these B-corp's have solid, steady, long term focused growth.

hippich 11y ago
or C-corps taxes more and international tax avoidance loopholes are closed. But i guess both of these would be hard to make happen

kingmanaz 11y ago

There are some funds which target such investors. For example, the Parnassus Endeavor fund: "The Parnassus Endeavor Fund normally invests at least 80% of its net assets(plus borrowings for investment purposes) in companies believed by the Fund’s investment adviser (Adviser) to provide good workplaces for their employees. Companies with good workplaces usually are able to recruit and retain better employees, and perform at a higher level than competitors in terms of innovation, productivity, customer loyalty and profitability. While no company is perfect, the Adviser makes a judgment as to which companies have good workplaces based on factors such as respectful and fair treatment of employees, employee satisfaction and engagement, pay and benefits, family-friendly policies, and support for volunteerism and philanthropy." Social investing as well as religious funds also put a higher priority on certain ethical criteria rather than overall profitability. The motive for investing in these funds depends on what one recognizes as their highest end.

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adenadel 11y ago

The investor who is more concerned with the public good than solely her own ROI.

st3v3r 11y ago

Amazon does this all the time, and yet their stock is doing ok. An investor who's looking beyond the next quarter will look more at a company than just ROI.

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