Quantcast
Environmental News for a Healthier Planet and Life

Delaware Passes Historic B Corp Legislation, Marks Tipping Point in Evolution of Capitalism

Business

As stated on the B Corporation website, July 17 is a historic day. It marks a tipping point in the evolution of capitalism.

"It marks the coming home of a capitalism that returns business to its proper role in society to create shared and durable prosperity," said the B Lab—a nonprofit that serves a global movement of entrepreneurs using the power of business to solve social and environmental problems—co-founders, Jay Coen Gilbert, Bart Houlahan and Andrew Kassoy. "With Delaware Gov. Jack Markell signing benefit corporation legislation, Senate Bill 47, into law, business leaders have a new freedom to make decisions that are in the best interests of society as well as their bottom line, and we—as citizens, customers, workers and investors—have the tools to identify and support them."

Gov. Jack Markell today joined legislators, entrepreneurs and investors to sign legislation (Senate Bill 47) enabling the formation of public benefit corporations in Delaware.

On July 17, Delaware became the nineteenth state to enact benefit corporation legislation. Delaware, home to 1 million businesses, including 50 percent of all publicly-traded companies and 64 percent of the Fortune 500, is the most important state for businesses that seek access to venture capital, private equity and public capital markets. The B Lab co-founders believe the path is now clear to scale business as a force for good.

“We’ve all heard about corporations wanting to ‘do well’ while also ‘doing good.’ With this new law, Delaware corporations will now have the ability to build those dual purposes into their governing documents,” said Gov. Jack Markell at a press event today. “We have heard repeatedly that public benefit corporations can fill a market need. But just as important, they will also fill a societal need.”

According to the B Lab co-founders, the state's recognition of this type of corporation—whose end objective is to create a positive impact on society and the environment— will significantly affect the development of this area of corporate law.

“This law will provide benefit corporations with the stability, efficiency and predictability that are the hallmarks of Delaware corporate law,” said Sec. of State Jeffrey W. Bullock, who oversees Delaware's Division of Corporations. “Our courts, our corporate and legal services industry and my staff look forward to providing the high-quality infrastructure and support that managers and investors have come to expect from Delaware.”

“I’m proud that Delaware now has a corporate vehicle to offer business leaders and investors that want to create value that extends well beyond owners and managers to society and the public as a whole,” said Sen. David Sokola (D-Newark), who was the prime sponsor of the bill in the Senate.

According to Jay Coen Gilbert, co-founder of the B Lab, “Delaware’s enactment of benefit corporation legislation helps business return to its proper role in society to create shared and durable prosperity. We’re deeply appreciative of Governor Markell’s leadership and the strong support of the Delaware General Assembly, the State Bar Association, the Court of Chancery and the Secretary of State in creating a clear path to scale business as a force for good.”

--------

EcoWatch Daily Newsletter

Deserted view of NH24 near Akshardham Temple on day nine of the 21-day nationwide lockdown to curb the spread of coronavirus on April 2, 2020 in New Delhi, India. Raj K Raj / Hindustan Times via Getty Images

India is home to 21 of the world's 30 most polluted cities, but recently air pollution levels have started to drop dramatically as the second-most populated nation endures the second week of a 21-day lockdown amidst coronavirus fears, according to The Weather Channel.

Read More Show Less
A Unicef social mobilizer uses a speaker as she carries out public health awareness to prevent the spread and detect the symptoms of the COVID-19 coronavirus by UNICEF at Mangateen IDP camp in Juba, South Sudan on April 2. ALEX MCBRIDE / AFP / Getty Images

By Eddie Ndopu

  • South Africa is ground zero for the coronavirus pandemic in Africa.
  • Its townships are typical of high-density neighbourhoods across the continent where self-isolation will be extremely challenging.
  • The failure to eradicate extreme poverty is a threat beyond the countries in question.
Read More Show Less
Sponsored
The outside of the Food and Drug Administration headquarters in White Oak, Md. on Nov. 9, 2015. Al Drago / CQ Roll Call

The U.S. Food and Drug Administration has approved the use of two malarial drugs to treat and prevent COVID-19, the respiratory infection caused by the SARS-CoV-2 coronavirus, despite only anecdotal evidence that either is proven effective in treating or slowing the progression of the disease in seriously ill patients.

Read More Show Less
Some speculate that the dissemination of the Antarctic beeches or Nothofagus moorei (seen above in Australia) dates to the time when Antarctica, Australia and South America were connected. Auscape / Universal Images Group / Getty Images

A team of scientists drilled into the ground near the South Pole to discover forest and fossils from the Cretaceous nearly 90 million years ago, which is the time when dinosaurs roamed the Earth, as the BBC reported.

Read More Show Less
The recovery of elephant seals is one of the "signs of hope" that scientists say show the oceans can recover swiftly if we let them. NOAA / CC BY 2.0

The challenges facing the world's oceans are well known: plastic pollution could crowd out fish by 2050, and the climate crisis could wipe out coral reefs by 2100.

Read More Show Less