The Wisconsin legislature has passed new legislation allowing Wisconsin businesses to incorporate as benefit corporations, which focus not only on shareholder profits but also on their impact on the environment, the community and society.
Tax law treats benefit corporations and C Corps equally, but a benefit corporation requires its corporate directors and officers to consider all stakeholder interests when making decisions.
Incorporating as a benefit corporation may give companies a leg up in the competition to attract top talent. Studies show that millennials want to work for a company that shares their values, and are willing to accept a pay cut to do so, Forbes reported. They’re also more willing to buy products from socially responsible brands.
Some colleges, such as Princeton, even forgive or reduce student loans for graduates working at a benefit corporation, per Forbes.
Millennials want their work to be meaningful, and to have a positive impact on the world through their work, Business Insider reported. Workers who feel they are making a difference through their work will stay with a company longer and be willing to work more hours.
They feel working for a company that shares their values is more important than a higher salary or flexible hours, per Business Insider, and only slightly less important than the chance to work with talented people, which they deemed most important.
Forbes reported there are more than 5,500 benefit corporations in the United States, and that 34 U.S. states have passed the benefit corporation legislation.
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