“Benefit Corporations”: Who Really Benefits?

This week’s Bad Bill of the Week is another repeat offender. SB 99 would create a state law recognizing “Benefit Corporations.” What are Benefit Corporations?

According to the bill, “a benefit corporation shall have as one of its corporate purposes the creation of a general public benefit.” The legislation defines “general public benefit” as: “A material positive impact on society and the environment, taken as a whole, as measured by a third-party standard.” (Emphasis added.)

This passage provides a major clue suggesting that SB 99 seeks to enforce the activities of companies according to certain standards of environmental impact and sustainability measures. And who provides this “third-party standard?”

To get the answer to that question and to learn more about this highly suspect piece of legislation, read the whole article here.