"On January 3, a new California law designed to give businesses greater freedom to pursue strategies that they believe benefit society as a whole rather than having to concentrate on maximizing profits went into effect. According to Patagonia CEO Yvon Chouinard, the new 'benefit corporation' - usually referred to as a B Corp - creates the legal framework for firms like his to remain true to their social goals.
"To qualify as a B Corp, a firm must have an explicit social or environmental mission, and a legally binding fiduciary responsibility to take into account the interests of workers, the community, and the environment as well as its shareholders. It must also publish independently verified reports on its social and environmental impact alongside its financial results.
"Other than that, it can go about business as usual. California is the sixth state to allow B Corps, but the idea of a legal framework for firms that put profits second is not confined to the United States. Britain, for example, has since 2005 allowed people to form 'community interest companies.' Similar laws are brewing in several European countries."
Read more in the Economist.
Why Women Aren’t C.E.O.s, According to Women Who Almost Were
"It’s not a pipeline problem. It’s about loneliness, competition and deeply rooted barriers." Read more in the NYT .
-
Even women who earn overwhelmingly positive performance reviews are told that they have ‘personality flaws,’ a new study finds. The double...
-
Many talented rural students don't go to elite schools, because they are unaware of the options. Read more in the NYT . Thanks, +Ju...
