Tue, Jan 3, 2012 -- 5:30 PM
Law Aims to Increase Corporate Social Responsibility
New Law Aims to Increase Corporate Social Responsibility
California is joining six other states today in allowing companies to restructure to try and merge profit with social responsibility. The new law creates benefit corporations, which must show how they are positively impacting society. The law in turn gives the company some legal protections from disgruntled shareholders who might sue, for example, if non-financial interests are used in decision making by executives.