Wachtell Lipton Discusses the Corporate Form for Social Good

State legislation allowing the establishment of benefit corporations—for-profit companies with a stated public purpose—has become widespread over the past decade. This increasingly available corporate form provides a mandate, and a safe harbor, for corporate leaders to pursue societal good along with shareholder profits. Directors are required to consider the impact of their decisions not only on the company’s shareholders, but on the entity’s larger social purpose. Investors who wish to support a company’s mission can be confident that it is an integral part of the company’s purpose and a consistent goal of its governance.

The popularity of these legislative efforts … Read more