Public Benefit Corporations

[bdlflt]

Patagonia is a great example of what PBC's can be and accomplish, but very few companies (and founders) are as successful for profits and the stated benefit.

One aspect here that I believe will be impactful but is hard to measure is how this type of signal - being a Public Benefit Corp instead of a standard S Corp or C Corp - can impact employee productivity. For one, it should make it very clear, from the top, what are some of the additional goals of the company beyond profit, and this can help in recruiting like-minded individuals and provide additional intrinsic motivation for them, especially if it's a grand goal like Patagonia's environmental aims. The passion a potential candidate would have for the stated goal could be the difference-maker if that candidate is trying to choose between multiple companies/job offers, and that type of selection from an employee I believe will improve their productivity at their chosen company (I chose this over that, so I'm going to try to confirm I made the right choice by working harder and believing I'm enjoying my work more).

There are other nuances at play too, but having the benefit codified in this manner I believe will help overall productivity.

Thank you Bdlflt for your answer.
Indeed Patagonia is an incredible example of what this kind of entreprises/corporations can achieve.
Following in the line of your argumentation, do you believe this like something necessary or that it should be taken into consideration amongst the crypto space? If yes, how do you imagine it and why do you think it's important? If no, Why?

Thanks Lucusfoundation for the response.

I do think being a PBC is a good (read: effective) lever for certain traditional companies, but shouldn't be shoe-horned in. For blockchain projects, at least those which rely on open source software and decentralized governance/operations (which is how most folks would understand the majority of blockchain projects when using it for shorthand), the "beneficial" goal is directly tied to the code in the project if there is in fact that goal. So, I'm not sure if a blockchain company would need to undergo extra hassle of being a registered PBC when there is a stronger method for demonstrating the goals of the project in the code itself. That said, it could be an additive feature for a company to have the open source and decentralized code demonstrate their commitment to the stated public benefit AND ALSO undergo the rigmarole of registering as a PBC. I do not think it is necessary though, as for employees of a company they are high-info consumers of a company's intentions - so the open source/decentralized existence would supersede the PBC designation. If only doing one, I'd make sure the public code aligns with the public statements.

[bdlflt]

I believe in outcome rather than intention. I don't care if people are greedy as as long as their actions benefit society as a whole. We can't always rely on people being philanthropic. I'm not sure what would be the best way to encourage people to get into these PBCs but there should be some sort of incentives.

To add to my previous post (I think they will be auto-merged, that's my goal at least):

I agree with you here that outcomes are more important than intentions, but I believe that many companies are not appropriately paying for the external costs that society incurs instead of the company, while the company gets almost of the benefit. In other words, there shouldn't be incentives for creating a PBC, but the externalities of many business should be accurately "charged" to those that cause them. A later post talks a bit more about quantifying this, but it seems the science + economics is presently capable of quantifying the external costs and so businesses should be required to pay for the external costs they previously could ignore.

[danherbias07]

Yes.

One good example is mining. Not the crypto currency mining but the real one where they used dynamites or anything that blows.
I have heard one news that some companies do not even help small counties where they do the mining.
All dust are in their place and almost everyday you here something is exploding. Their water aint clear anymore and their plants are also having dust all over the leaves.

They will need to do something to also benefit the people, specially within the range or the mining site. The county must have something in return for the benefit of them.

[guoyu78]

It’s my opinion strongly that governments should embrace strategies like public benefit corporations that provide companies with the potential to register as purpose-driven corporations. These corporations are different from traditional for-profit companies and nonprofit organizations because they operate with a three-way rear line, evenly estimating profits, people and the planet.

Benefit Corporations are mainly for-profit entities that look for ways to create social and environmental benefits in addition to the traditional aim of generating profit.

[deisik]

One good example is mining. Not the crypto currency mining but the real one where they used dynamites or anything that blows.
I have heard one news that some companies do not even help small counties where they do the mining.
All dust are in their place and almost everyday you here something is exploding. Their water aint clear anymore and their plants are also having dust all over the leaves.

They will need to do something to also benefit the people, specially within the range or the mining site. The county must have something in return for the benefit of them

That's a good example

But it shows a lot more than what you mention. Basically, you can't really blame these companies as they are looking for profits and that's exactly what their owners (stakeholders) expect. So the question should rather be addressed to the corrupted governments of these "small" countries which allow all this shit to happen in the first place. Obviously, they are being paid by the mining companies to turn a blind eye to the damage the latter make to the environment

[ausbit]

It is very good, cause it serves the public in many ways.
It can create jobs in the community for those that doesn’t have job and like you have just said, it benefits everyone, the public, though the main purpose of everything is for the shareholders to make profit, but it also benefits everyone also.