Corporate Governance: No Longer Just About Business

With the goal of closing the gender gap in corporate governance, in 2018 former Governor Jerry Brown signed into law requirements that all publicly traded corporations in California include at least one woman on their board of directors by the end of 2019. By the end of 2021, those companies that have five member boards must have at least two directors who are female. For boards with six or more directors the Read More

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California Benefit Corporations: Sample Annual Reports

Social enterprises are hot: They are springing up around the United States. California has been in the forefront of this exciting new movement of hybrid corporations that combine profit motive with the goal of good works, community consciousness, and sustainability. A benefit corporation organized under California law will be similar, in many respects, to benefit corporations in other jurisdictions, but this state Read More

Benefit Corporations: Who Enforces the Rules?

Social entrepreneurs and policymakers have joined forces in recent years to enable new forms of corporate enterprise: hybrid for-profits that are more than just engines for pumping out shareholder profits. California is in the forefront of this movement. The “benefit corporation” is one of two available models in this state for the “business-with-a-conscience.”  We’ve written about these exciting hybrids here, here, Read More

Exciting Submissions for MacArthur Foundation $100-Million Contest

Early last summer, we reported in “The MacArthur $100-Million Grant Contest,” that the prestigious MacArthur Foundation had launched an audacious competition under the slogan: “Big problems require bold solutions.” According to the terms of the “100&Change” competition announced on June 2, 2016, there is to be a $100-million award for a “single proposal that will make measurable progress toward solving a Read More

Transparency for Benefit Corporations

Around the nation, state legislatures are jumping on the bandwagon to authorize a new kind of for-profit corporate model for socially conscious entrepreneurs and consumers: the “benefit corporation.” We mentioned in “Social Enterprises: A Revolution Under the Radar” that California has been a leader in this movement. Each jurisdiction has its own version of this new hybrid format. The Golden State’s statutory scheme Read More

CA Benefit Corporations: Directors' Reports

Socially conscious entrepreneurs in the Golden State now have two hybrid corporate models available to achieve the goal of “business-with-a-conscience.” In “Social Enterprises: A Revolution Under the Radar,” we introduced the California  “benefit corporation” and the California“social purpose” corporation (formerly called a “flexible purpose” corporation). In “California Benefit Corporations: An Introduction,” we Read More

California Benefit Corporations: An Introduction

In recent years, the social enterprise model of business “with conscience” has been springing up all around the world. In “Social Enterprises: A Revolution Under the Radar,” we explained that California has been a leader of this emerging movement within the United States. What brought about the development of an innovative, hybrid concept of corporate structure?  Simply put, neither the traditional, for-profit nor Read More

Business Fundamentals: Benefit Corporations

Benefit Corporations are probably the most recognized business entity available to social entrepreneurs. Establishing your business as one offers many benefits for a socially conscious enterprise, but there are several legal and administrative requirements to be aware of before taking the leap. First, much like a nonprofit, Benefit Corporations in California have a "general public purpose" baked into their Read More

Flexible Purpose Corporations: Come January 2015, They will be Social Purpose Corporations

California has been in the forefront of the recent movement to facilitate establishment of social enterprises: for-profit corporations that are authorized to make money and benefit society. The Legislature authorized two new corporate models: “benefit corporations” and “flexible purpose corporations.” Socially conscious businesses were permitted to form - or convert into - these new hybrid formats beginning January Read More