The sustainable boardroom
Santa Rosa Press Democrat
by Cathy Bussewitz
25 Aug 11
A bill that would allow companies to incorporate in a way that demonstrates their commitment to social and environmental goals is close to passage in the Legislature.
The bill, AB 361 by Assemblyman Jared Huffman, D-San Rafael, would create a new class of companies called “Benefit Corporations.” Companies under the umbrella could focus on implementing social and environmental ideals, in addition to generating a profit.
Each company would be required to create an annual report on its positive impacts on society and the environment.
“Many companies want to do more for social responsibility, for the environment, but they don't want to get sued for their decisions,” Huffman said.
Under current law, California companies exist to conduct business in a manner that maximizes shareholder value. Companies that make decisions to prioritize environmental or social values over profit are at risk of lawsuits from shareholders.
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The bill was modeled after similar legislation in Hawaii, Maryland, New Jersey, New York, Vermont and Virginia….
http://www.pressdemocrat.com/article...NESS/110829718
