Thu November 21, 2013
Bill Allowing for 'Benefit Corporations' Filed in Kentucky General Assembly
A bill has been pre-filled in the Kentucky legislature that would permit the founding of “benefit corporations.”
State Rep. Kelly Flood, a Democrat from Lexington, said she is pushing the legislation to address shortcomings in modern-day capitalism. Conventional wisdom dictates that non-profits do the most good without making any money, and for-profit corporations make the most money without caring about what’s right or what’s wrong.
Enter b-corps, which aim to combine the best of both worlds by requiring commitments to educational, environmental and social welfare while keeping shareholders happy. The online retailer Etsy is but one of hundreds of b-corps across the nearly 20 states that allow them.
Flood says b-corps appeal to young investors looking to make a positive mark as well as a buck.
"I think what it does is create a business for today’s more knowledgeable, and in some ways technologically savvy and informed citizenry of today," Flood says. "We need corporations that can be held accountable to really, taking care of workers’ rights, community well-being, and making a profit.”
Flood adds she is committed to fighting for the bill even if it takes years, and that its combination of free enterprise and the greater good will create common ground for conservatives and liberals in the statehouse.