Benefit Corporations: Fostering Socially Conscious Corporate Leadership

Abstract

While the consideration of social, environmental, and ethical issues lies center stage in business discourse, genuine progress continues to advance at a glacial rate. Despite estimates that over 2 million organizations work to promote social justice and environmental sustainability, multinational corporations continue to wreak havoc with debatable levels of accountability. In light of such a limited track record of success, as well as the social, economic, political, and cultural differences throughout the globe, the central question driving this article is as follows: Is it possible to foster a worldwide business environment where social enterprise reflects a common business practice rather than a notable exception to the rule of profits before people and planet? We believe that the answer to this question is yes, and that one of the vehicles may drive such change is an emerging and innovative type of business entity, the social enterprise. Numerous countries, including the United States, Canada, United Kingdom, France, Germany, Italy, Japan, and Russia, have already enacted legislation in support of social enterprise business entities. Despite the voluntary nature of social enterprise legislation, the emergence of such legislation has the potential to catalyze new expectations and efforts for behavioral change, paving the way for a new paradigm in business behavior.