Bi-partisan legislation to create a new corporate structure in New Jersey unanimously passed both houses of the Legislature and now waits for Governor Chris Christie’s signature. If signed, New Jersey would become the third state to recognize B Corporations — joining Maryland and Vermont.
B Corporation legislation would allow companies with social or environmental missions to incorporate those missions into their corporate charters and to “consider the public benefit when making decisions.”
“Many companies participate in philanthropic activities, but giving a business the ability to define itself as an entity with a specific mission of improving education or protecting the environment will give it a competitive edge,” said Senator M. Teresa Ruiz. “This bill will allow businesses to boost their bottom line while at the same time working to promote the public good.”
“State government has a responsibility to encourage private businesses to engage in activities that benefit the public,” said Senator Tom Kean Jr. “This legislation will encourage good corporate citizenship and foster greater sense of civic responsibility in New Jersey’s business community.”
According to the B Lab web site there are several other states currently working on B Corporation legislation – Colorado, New York, North Carolina, Oregon, Pennsylvania and Washington. Philadelphia has also passed a Sustainable Business Tax Credit for B Corporations.
Photo credit: Via Flickr by maduarte