Firms incorporating under this law must adopt and be assessed under an independent third party standard for corporate social responsiblity (CSR), such as those provided be B Lab, Ceres, GRI. etc. Benefit corporations in Lousiana must provide a "specific public benefit," which may mean any of the following:
- Providing low-income or underserved individuals or communities with beneficial products or services.
- Promoting economic opportunity for individuals or communities beyond the creation of jobs in the normal course of business.
- Preserving the environment.
- Improving human health.
- Promoting the arts, sciences, or advancement of knowledge.
- Increasing the flow of capital to entities with a public benefit purpose.
- Conferring any other particular benefit on society or the environment.
- The shareholders of the benefit corporation.
- The employees and work force of the benefit corporation, its subsidiaries, and its suppliers.
- The interests of customers as beneficiaries of the general public benefit or specific public benefit purposes of the benefit corporation.
- Community and societal factors, including those of each community in which offices or facilities of the benefit corporation, its subsidiaries, or its suppliers are located.
- The local and global environment.
- The short-term and long-term interests of the benefit corporation, including benefits thatmay accrue to the benefit corporation fromits long-term plans and the possibility that these interests may be best served by the continued independence of the benefit corporation.
- The ability of the benefit corporation to accomplish its general public benefit purpose and any specific public benefit purpose.
- May consider other pertinent factors or the interests of any other group that they deem appropriate.
A full list of states with benefit corporation statutes is available on my website, along with a listing of companies that have adopted this new corporate entity type.
Craig R. Everett, PhDGraziadio School of Business and Management