Secretary of State Kate Brown ceremonially registered Oregon’s first Benefit Companies last week on January 2, the effective date of a new law creating a socially conscious corporate structure.
Benefit Companies are a new kind of business legally required to:
1) create a materially positive impact on society and the environment;
2) expand fiduciary duties to require consideration of the interests of workers, community and the environment; and
3) publicly report annually on its overall social and environmental performance using comprehensive, credible, independent and transparent third party standards.
B Company status offers businesses more freedom to define success and provides legal protection for those looking to pursue a corporate purpose other than maximizing profits for shareholders.
