Law Aims to Increase Corporate Social Responsibility

KQED News, January 3, 2012

Bring in your corrected worksheet in class (not the answer key).

1.

How does the new law aim to increase corporate social responsibility? The new law aims to create Benefit
Corporations that impact the society more positively in exchange of some sort of legal protection against
shareholders.

2.

State concerned: California

3.

Total number of States with such legislation in 2012: Cali joining six others = 7

4.

Number of companies in California which were restructuring to become a Benefit Corporation in Jan. 2012:
17

5.

What are Benefit Corporations? Companies that implement CSR with Profit maximization.

6.

Key difference with for-profit corporations: BC maximize the value of the community not just the
shareholders

7.

Financial incentives to becoming a Benefit Corporation (look at tax benefits and profits made): None

8.

What do corporations gain from being a Benefit Corporation? Attracting and retaining good employees,
strong bonds with your customers and other business partners and being more attractive for investors
more interested in Benefit Corps.

9.

What is B-Lab? a non-profit organization that certifies corporations as socially responsible after audit.

10.

What is a certified B Corp? a corporation that is socially responsible.

11.

Number of certified B Corps in the US in 2012: over 500 Hundred

12.

Impact of being a certified B Corp: These companies are they creating HIGH Quality jobs during a recession
and are improving the quality of life in their local communities and for future generations.

13.

Think of one question based on the report that you could use as a subject for next weeks debate in class.
How and who decides what constitutes positive social impact?
Write a detailed and structured account of the report.
California is joining six other states in allowing companies to turn into benefits Corporations. According to
Mike Hannigan, is president of Give Something Back Office Supplies in Oakland this should allow his
company to grow and give back even more. The core of this law is to allow for executives to not be only
obliged to maximize the shareholders value but the communitys through Corporate social responsibility.
There are no tax benefits and no data available to quantify the benefit of this type of corporations but
among some of the certified B corps, which stands for companies that are certified to be implementing CSR
by third parties, the results are highly positive.

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