Benefit Corporations

For most corporations, profit is their only legally sanctioned goal. However, a new law taking effect in California in the new year creates an alternative—the California Benefit Corporation, or B Corp—which must promote and document its social benefits alongside its fiscal returns.

One of Assemblyman Jared Huffman's annual events is his "There Oughta Be A Law" contest, in which he invites constituents to submit ideas for legislation that he will subsequently pursue in Sacramento. AB 361, Huffman's bill to create the California Benefit Corporation classification, was the result of last year's contest.