Question

Do you think more businesses will adopt the benefit corporation model? Should they?

Answer 1

When the businesses adopt benefit corporation it creates advantages for every stakeholder in the business, from consumers and talent to shareholders and directors. So I think more businesses will adopt this model

Businesses can adopt this model due to the following reasons

1) Benefit corporation status provides legal protection to balance financial and non-financial interests when making decisions both in sales scenario as well as when it is a publicly readed company.

2) Investing in a benefit corporation gives investors the assurance they need that they will be able to hold a company accountable to its objective in the future.

3) The business will join other high profile, highly respected companies as a benefit corporations.

4) Benefit corporation status gives prospective employees confidence that a company is committed to their mission.

5)  Benefit corporation status can make the company more close to investors as a company with increased legal adherence, accountability and transparency around its mission.

6) . Benefit corporations can also speed up investor due diligence since they produce an annual benefit report, which describes their qualitative activities aimed at producing general public benefit.