Benefit Corporations: Trends and Perspectives

Author:

Stella Richter Mario,Passador Maria Lucia,Sertoli Cecilia

Abstract

AbstractThis chapter frames the recent rise and vibrant growth of the phenomenon concerning benefit companies in the broader context of the general trend of a re-thinking of corporate purpose, shareholder welfare, shareholder theory, enlightened shareholder value, as well as corporate social responsibility.After tracing this framework, the present study particularly focuses on the necessity (or advisability) of a regulatory initiative regarding benefit companies and, if so, for which purposes. According to the authors, the point is to decide whether it is necessary to pass a law on benefit societies to be able to steer the management of the companies towards pursuing the dual purpose (i.e., a specifically determined social interest after balancing the selfish shareholder interest and that of other parties).In conclusion, the authors believe that, except in those cases where benefit corporations contribute to the creation of shareholder wealth, it is hard to imagine them being used in a numerically meaningful way.

Funder

The Geneva Centre for Philanthropy of the University of Geneva

Publisher

Springer International Publishing

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