B Corporations
In a huge stride forward for business and communities alike, Governor Brown signed into law the historic Assembly Bill 361, creating a new class of corporation, a benefit corporation. The legislation, introduced by Assembly member Jared Huffman (D-San Rafael) legally requires benefit corporations to prioritize positive impact on society and the environment, while meeting higher standards of accountability and transparency. Current law requires corporations to prioritize the financial interests of shareholder over the interests of workers, communities, and the environment.
The California legislation is unique, providing the strongest consumer and investor protection, with more rigorous transparency provisions than the states that have so far enacted benefit corporation legislation. California is the sixth and largest state to enact benefit corporation legislation and has a strong existing base of entrepreneurs connected to sustainability.
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