Benefit Corporation means a traditional corporation, which has modified obligations, which are committed to higher principles of purpose, transparency, and accountability. These are profit companies, which are considering or will consider in future additional stakeholders in addition to generating profit for their existing stakeholders.
Companies which are benefit corporations have plenty of advantages for the stakeholders. These advantages include:
- Reduced director liability.
- The stockholder rights are more expanded.
- Your company will be more attractive to job seekers.
- Benefit Corporations are known to be high-profile companies with a high reputation for leadership.
- Companies, which are BC tend to have increased access to investment opportunities and private investment capital.
Benefit Corporations can be described as companies that not only focus on making a change in society but also on generating revenue for their stakeholders. PBCs take into consideration the impact of their business decisions on their stakeholders and the general public. Benefit Corporations are also known as Public Benefit Corporations (PBC).