Which type of corporate entity aims to create a positive impact on society and the environment?

The correct response is indeed focused on the concept of a Benefit Corporation. This type of corporate entity is designed not only to generate profit but also to pursue a public benefit and create a positive impact on society and the environment. Benefit Corporations are legally obligated to consider the impacts of their decisions on various stakeholders, including employees, customers, suppliers, community, and the environment. This duty distinguishes them from traditional corporations, which primarily prioritize shareholder profit maximization.

Benefit Corporations undergo a rigorous process to ensure accountability and transparency in their practices. By requiring companies to report on their social and environmental performance, it encourages them to act responsibly and ethically beyond financial considerations. This commitment to societal impact is central to their operations, setting them apart from other entities that may not have such guidelines or obligations.

In contrast, non-profit corporations are focused on serving a public or mutual benefit without the purpose of profit distribution. Limited Liability Companies and Traditional Corporations typically prioritize financial gain for their owners and shareholders, with less emphasis on broader societal or environmental responsibilities.