What is a core characteristic of a benefit corporation?

A core characteristic of a benefit corporation is the incorporation of societal and environmental benefits into its business model. This means that, unlike traditional corporations that primarily focus on maximizing shareholder profits, benefit corporations are obligated to consider the impact of their decisions on various stakeholders, including employees, customers, the community, and the environment. This dual commitment to profit and purpose makes benefit corporations distinct, as they aim to balance financial goals with positive social and environmental outcomes.

The legal framework surrounding benefit corporations often requires them to produce an annual benefit report that assesses their societal and environmental performance, reinforcing their commitment to these broader objectives. This accountability to societal and environmental outcomes reflects a growing trend among businesses to engage with broader stakeholder interests beyond mere profit generation.