Is Doing Well While Doing Good a Fad?
Filed in archive General on July 9, 2010
© @MSG
IFC asked the question a few years ago: Is the idea of a "for-benefit" corporation a hot new business model or just a passing fad?
While I don't think that for-benefit companies will be taking over Wall Street in the immediate future, it does seem clear that the idea is here to stay. And a number of states (California, Colorado, Maryland, New York, North Carolina, Pennsylvania, Oregon and Vermont) are willing to accommodate the idea with legal protections designed to distinguish them from for-profit companies.
The NY Times did a definitive piece on the concept back in 2007. NPR ran a piece a couple of months ago that looked specifically at efforts in California to protect for-benefit companies.
I try to keep an eye on the progress of laws to protect for-benefit companies. I think we can all agree that entrepreneurship is good for our economy. For-benefit companies create a motive for entrepreneurship beyond simple profit. I know people who will argue that that's silly - that no motive beyond profit is necessary. They're wrong, of course. And protecting for-benefit companies will provide fertile group for innovation, too.
The biggest threat to the success of for-benefit companies is that they will become profitable and succeed - at which point they must usually give up their for-benefit status (Ben & Jerry's is the classic example). Unless new laws are put in place to protect the for-benefit motive for entrepreneurship...
© @MSG
Permalink: Is Doing Well While Doing Good a Fad?
Tags: social entrepreneurship, for-benefit doing doing+good benefit+companies while+doing
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Rating: 9.50 out of 2 vote(s) cast.
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Response from:
Dean
(07/14/10 5:24pm)
This can't be a fad. I see young people choosing to not be doctors and lawyers because they say "...Why become a surgeon when the world is falling apart?" Governments have overspent and can't make the changes we need... we have to do it and we have to do it with capitalism... here's my try at making this more than just a fad... www.dateforChange.com .. it's a dating site that raises money for Charity...
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