Businesses Can Soon Register as Benefit Corporations
The Indiana Secretary of State’s office says, beginning January 1, businesses in Indiana can register as benefit corporations. Those that register will be able to focus on the community and social aspects of their goals in addition to the financial aspect.
Benefit corporations are different from traditional for-profit corporations in one key aspect. They require the businesses’ boards of directors to consider environmental and social factors as well as the financial interest of shareholders.
“Traditional corporate law has required directors to place profits above all else,” said Secretary of State Connie Lawson. “Allowing businesses to register with my office as a benefit corporation will allow them to incorporate their social mission into the core of their business.”
Carmel-based TCC says it plans to be one of the first businesses to register as a benefit corporation. Katie Wiley with TCC says, "all of our employees are hired based upon the philosophy that the employees matter, the community matters and the customers matter so this is a way to really pull that ‘community matters’ element of our virtuous circle to the forefront."
The secretary of state’s office says it is recommended that businesses interested in becoming a benefit corporation consult an attorney, accountant or business advisor first. Businesses that are ready to make the chance can find the forms with which to register here.