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It's a nice idea and website, but the structure seems very…nonideal. Why should this be governed by a private entity that they have to pay to monitor and recert
by mminer237 3y ago
It's a nice idea and website, but the structure seems very…nonideal. Why should this be governed by a private entity that they have to pay to monitor and recertify them? What's to stop a company from being "for society and the environment" until they get big enough to not care? As far as I can see, nothing's legally binding. At any point, the shareholders can just amend the bylaws to give up their little badge and do whatever makes them more money.
I think something like a benefit corporation or L3C is far more meaningful. Having all the capital legally tied into having society and the environment as beneficiaries thereof is way better than having a private company give you a little badge to advertise with as long as you do what they want.
- austinjp 3y agoFor anyone else who doesn't know what an L3C is, Google says it's L3C a low-profit limited liability company.
- 0xffff2 3y agoI looked into it a bit, and it seems that you probably need to be a benefit corporation or L3C to qualify for certification. For example, here's what they say for US/Deleware/Corporation on their legal requirement page [0]: > Your company can meet the legal requirement for B Corp Certification by electing public benefit corporation status... I am very much not a lawyer, but they go on to say existing corporations can transition to PBC status with a majority vote. I wonder whether the reverse is true. If so, there's no legal hurdle to pulling the same bait and switch you describe with a benefit corporation. 0: https://www.bcorporation.net/en-us/about-b-corps/legal-requirements/ https://www.bcorporation.net/en-us/about-b-corps/legal-requi...