Sample Letter to CA Assembly in Support of AB 361
More and more entrepreneurs are starting companies that seek not only to profit in the traditional sense but also to create a material positive impact on society and the environment. As such, corporate leaders and investors need to be able to run their businesses in ways that consider the interests of a variety of stakeholders and that incorporate a broader mission than simply maximizing profit. Unfortunately, traditional corporate law defines the fiduciary duty of corporate officers and directors narrowly, making it difficult for businesses with a social mission to make the kinds of complicated decisions they face every day, even when those decisions maximize returns to shareholders.
It’s time that California law recognized the important potential of so called Benefit Corporations to provide market based incentives for investing in solutions to the many social and environmental problems currently facing our state and the world.
This would be good for California. Each state should attempt to become “the” state for 21st century incorporation. What Delaware became for conventional corporations, California could become for the modern corporation.
I encourage you to support AB 361, which would establish legal infrastructure for the creation and oversight of Benefit Corporations in California. I also ask that you do everything in your power to convince your colleagues in the Senate to pass the bill as well. With the passage of Benefit Corporation legislation, California has a chance to be a real leader in creating the legal infrastructure necessary to support sustainable businesses in America.