Benefit Corporations Are Here!
It turns out the third time really is the charm for social enterprise legislation here in Connecticut!
After three years, and so much hard work and advocacy by supporters of social enterprise all over the state, Connecticut has now become the 26th state to pass legislation that allows for benefit corporations. In the face of 11th hour political opposition that could have killed the chances of passing benefit corporation legislation for the 2nd year in a row, Governor Malloy and legislative leadership decided that it was too important to leave behind, and included language to enable benefit corporations in the 2015 budget, which passed early Sunday morning.
Connecticut’s benefit corporation statute, which will go into effect on October 1st, 2015, is considered the most comprehensive in the United States. The statute will allow companies to focus on both profits and solutions to social or environmental problems, and will provide legal protections, accountability, and a level of transparency that is very expensive and time-consuming to obtain under current law. Connecticut is also the first state in the country to offer a “legacy preservation” option, which allows benefit corporations the option to lock in their social mission in perpetuity regardless of changes to management or ownership of the company after a two year waiting period.
We would like to extend our sincerest thanks to everyone who has helped support this legislation over the past few years. What started out as an idea proposed by Kate Emery and a small group of supporters with a vision of going beyond business as usual, has transformed into a community of social entrepreneurs, advisers, and allies who have willed this new structure into existence. This could not have happened without your hard work, your advocacy, and your vision for a world where businesses could consider more than just profits.
