B corporations or – benefit corporations – are a new way for businesses to operate. In the past a corporation had a duty to only maximize profits for its shareholders. The company’s directors could be sued for also considering the environment and other social factors over profits. The B Corporation changes all of that.
In a B corporation, the directors can consider society and the environment, in addition to profit. The organizing documents can even name specific public benefit purposes the company seeks to achieve.
For more information on the new benefit corporation click here.