Principles before profits? Liberal versus business?

By : Administrator
Published 27th April 2010 |
Read latest comment - 30th April 2010

Interesting development in the States. California, Vermont and Maryland now have legal entities called "benefit corporations", whilst other states are considering them.

Basically, an entreprenuer who has built his business with a particular viewpoint on social issues or responsibilities, can have this incorporated into the company charter, so any future buyer of the business has to adopt them.

Guess this is where liberal tree hugging and cold business collide head on

Wonder if we will see anything like that in the UK over the next few years? I can see some benefits, we for example have always pledged to help our local Air Ambulance. It would be nice if Yell came along and bought us for tuppence hapenny that they would continue to honour any pledges we had made going forward.

Source:
New Legal Protections for Social Entrepreneurs - BusinessWeek

Steve Richardson
Gaffer of My Local Services
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Comments
I guess some of it will come down to how much you can actually put in there. If you go overboard nobody will buy a the company as it may go against their own company branding or supported charity.

I am sure that there will be people already plotting on how to legally get around the issue (asset strip and what not) so that they do not have to take on board a 100% of what is said in any agreements.

Credit-Manager.Net

I think it'll make more sense for some businesses than others.

You take something like Innocent Smoothies, where their USP is their socially-responsible corporate ethic and at the core of the whole business, then removing the tree-hugging is going to hugely change the company to the point where it is no longer the same company. They aren't just selling fruit drinks - they're selling the whole organic recycled health sunshine positive vibes and a big hug.

VirtuallyMary

No real thoughts on your post Steve other than we took a direct debit out some time ago to support the Air Ambulance. What a cracking value for money DD; never know when you might need it.

bonsai passion

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