…as a public benefit corporation.
I would encourage everyone to read about what a Benefit Corporation is. It’s still for-profit, but being public benefit gives the officers a little protection from shareholders suing them when stock performance goes down. In theory, this protects them from being driven solely by profit.
https://en.m.wikipedia.org/wiki/Benefit_corporation
However, there’s no real guidance or oversight on whether a company still qualifies for that designation. They can self-audit, they can vote to change to a normal corporation at any time, switch back again, etc. This is not a different tax classification, this is a corporate board promise, and I have no reason to think they’ll stay a public benefit corporation, even if they have the best intentions right now.
Yeah, still a net positive. Not complaining, just informing.
I’ve just seen the “it’s federated
(eventually)” and “it’s a public benefit corporation” tossed around on occasion like they’re exonerating evidence, and I would hate to see people get tricked into a false sense of security.