4 ms·

Where do benefit corporations and b corps (https://www.bcorporation.net/what-are-b-corps https://www.bcorporation.net/what-are-b-corps) miss the mark? Benefit

by jonmc12 10y ago

Where do benefit corporations and b corps (https://www.bcorporation.net/what-are-b-corps https://www.bcorporation.net/what-are-b-corps) miss the mark? Benefit corps have the specific purpose to increase prosperity for all stakeholders - not just shareholders. They are indeed a proposal for a "new operating system" for companies, and it is adopted by many companies (some very well-known) already. The basic idea is to put a statement of public benefit in corporate bylaws, then sign up for an assessment that audits that your company actions are indeed aligned with public benefit. This effort, nominally, would seem to address many of the problems laid out in the post, but benefit corps are not mentioned once. I'm not saying its _the_ answer, but seems like a more collaborative, concrete starting point for a solution than "some mass infusion of the 1960s spirit."

Nomentatus 10y ago
Private companies without investors also elude the problems in the post, of course. (Though in both cases you may have to deal with an Uber-type competitor willing to subsidize its operations for long periods - something of dubious legality, but it still happens.) Note that if you begin as a public benefit corporation, raising funds will be obstacle number one, since you must compete not just in your market with current-model companies, but also compete with them for funds. So no wonder it's more common for successful private companies to pay back their investors and then transform themselves into public benefit companies. This is still useful as an option, but hardly more than a start at a solution. Unless laws are changed, of course. If the law allowed public companies to change to a public benefit corporation without warning regardless of investor's opinion that would be a huge change - but might thoroughly discourage investment, of course.

by jonmc12 10y ago

Nomentatus 10y ago

Private companies without investors also elude the problems in the post, of course. (Though in both cases you may have to deal with an Uber-type competitor willing to subsidize its operations for long periods - something of dubious legality, but it still happens.) Note that if you begin as a public benefit corporation, raising funds will be obstacle number one, since you must compete not just in your market with current-model companies, but also compete with them for funds. So no wonder it's more common for successful private companies to pay back their investors and then transform themselves into public benefit companies. This is still useful as an option, but hardly more than a start at a solution. Unless laws are changed, of course. If the law allowed public companies to change to a public benefit corporation without warning regardless of investor's opinion that would be a huge change - but might thoroughly discourage investment, of course.