Lawmakers to Weigh Measure Creating ‘Benefit Corporations’February 27, 2012 – In The News
Andrew Santana discussed Senate Bill 433 – the proposed bill that could make Pennsylvania the eight state to allow businesses to structure themselves as benefit corporations.
“The real significance of this legislation is that it enables officers and directors of those corporations to consider more than just the bottom line when making decisions without exposing themselves to personal liability,” said Santana.
“Under Pennsylvania’s current law, many directors and officers may wish to consider nontraditional constituencies when making their decisions, but refuse to do so for fear of claims by shareholders,” he added.
When asked if legislation could be a tool to weed out the greenwashers, Santana replied, “I do think that this legislation could effectively distinguish those corporations that use environmental and social-consciousness propaganda to boost their performance (from) those corporations that are truly committed to being environmentally and socially responsible.”
Santana adds that the firm is “committed to assisting its clients with new and innovative endeavors, including those who wish to make their commitment to their communities by being ‘benefit corporations.’”