Government

Policymakers can have a direct impact on how businesses operate, from enacting legislation regarding corporates taxes to passing policies on raising the minimum wage. Foreign policy, trade agreements, equal opportunity employment these are just a few of the many ways to see government impact on business.

One of the major ways legislators can propel the ability of businesses to do more good is by pursuing and championing benefit corporation legislation. By incorporating as a benefit corp, companies are legally bound by their bylaws to hold true to their mission and values and all of their stakeholders instead of being bound to focus solely on fiduciary returns to shareholders. Senator Bob Bacon of Colorado, a supporter of benefit corporation legislation, says, “Benefit corporations are a new, innovative type of company that will not only foster job creation but also positively impact our communities. There are plenty of entrepreneurs out there looking to start this kind of socially conscience company and plenty of investors looking to support them. ” More than 30 states have passed benefit corporation legislation, and Italy became the first country to pass the legislation in 2016.

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Well-known politicians have also thrown their name behind corporate social responsibility. Former President of the United States Bill Clinton has publicly supported the growth of Certified B Corporations and benefit corporation legislation. “Quarterly shareholder values should not be the only benchmark by which we judge corporations,” Clinton says. B Lab, the nonprofit that certifies B Corporations, has also participated in the Clinton Global Initiative forum. (To learn about how B Corp certification impacts businesses, read our free report.)

As society demands corporate social responsibility and more values-driven businesses exemplify their ability to compete and perform in the marketplace, government impact on business will likely evolve to reflect this changing landscape.

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Your company can become a force for good when you download our FREE Special Report, Changemakers like John Replogle and Mandy Cabot Reveal B Corporation Benefits for Their Businesses.



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