Social Enterprise Governance

18 U. PA. J. BUS. L. 919 (2016)

UC Hastings Research Paper No. 179

67 Pages Posted: 24 Aug 2016 Last revised: 26 Aug 2016

See all articles by Alina Ball

Alina Ball

University of California Hastings College of the Law

Date Written: August 22, 2016

Abstract

The social enterprise movement has ushered in a promising new wave of companies using market-based strategies to advance social and environmental change. The longevity and growth of social enterprises will be determined by their ability to balance the complex and often competing interests within these unique business entities. The established corporate governance regime, which predominately addresses the characteristics of public companies, does not provide adequate oversight for promoting good corporate governance within the social enterprise sector. This Article argues that the benefit reporting requirements in hybrid-corporation statutes offer an innovative mechanism for encouraging and maintaining good social enterprise governance. Using the benefit reporting requirements within hybrid-corporation statutes as a model, this Article provides a normative framework and establishes the implementation principles for social enterprise governance across various legal entities. By counseling social enterprises on how to promote participatory democracy and increase the company’s capacity to detect and address problems, corporate lawyers serve a critical function in developing social enterprise governance. Using an approach guided by corporate lawyers and informed by social enterprise practitioners would build on the traditional corporate governance paradigm to develop narrowly tailored mechanisms that facilitate a more resilient social enterprise sector.

Keywords: corporate governance, social enterprise, benefit corporation, benefit reporting, new governance theory

Suggested Citation

Ball, Alina, Social Enterprise Governance (August 22, 2016). 18 U. PA. J. BUS. L. 919 (2016); UC Hastings Research Paper No. 179. Available at SSRN: https://ssrn.com/abstract=2827913

Alina Ball (Contact Author)

University of California Hastings College of the Law ( email )

200 McAllister Street
San Francisco, CA 94102
United States

HOME PAGE: http://www.uchastings.edu/academics/faculty/experts/index.php?expert=alina.ball

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