An Indicator of Synergy between Government and Corporate Goals? The Case of the Benefit Corporation

International Journal of Humanities and Social Science

© 2020 by SSRG - IJHSS Journal

Volume 7 Issue 3

Year of Publication : 2020

Authors : Professor Breena E. Coates and Professor Thomas G. McWeeney

10.14445/23942703/IJHSS-V7I3P106

How to Cite?

Professor Breena E. Coates and Professor Thomas G. McWeeney, "An Indicator of Synergy between Government and Corporate Goals? The Case of the Benefit Corporation," SSRG International Journal of Humanities and Social Science, vol. 7,  no. 3, pp. 23-27, 2020. Crossref, https://doi.org/10.14445/23942703/IJHSS-V7I3P106

Abstract:

Traditional corporations have produced many challenges and threats to the welfare of nation-states by their extreme wealth-maximizing philosophies—that primarily has taken a toll on people and the planet and hollowed out the sovereignty of nation-states. This paper examines a new form of corporation—the Benefit Corporation in the United States--that came about through public policy driven by elected representatives in state governments. With the emergence of this new corporate form, the roles of the public and private sectors are synergized. Whereas U.S. corporate law was once viewed (somewhat erroneously) as primarily existing to maximize shareholder wealth, the Benefit Corporation aims to make profit while serving the public interest, and thus takes into account a stakeholder value in a corporation. Its charter allows for this broader purpose to be pursued by corporations without fear of shareholder lawsuits. Benefit Corporate missions uphold the “three E’s”: Ecology, Equity, and Economy. Benefit Corporations are an early step in changing power balance between the organizational sectors

Keywords:

Corporate Goals, Synergy

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