Vote YES on SB 359 (Jansen), SB 360 (Jansen)/HB 4615 (Schmidt), HB 4616 (Barnett) Benefit Corporation legislation,which are two bills tie-barredtogether that will create a new corporate form in Michigan.
These bills enable the voluntary development of a growing sector of the economy comprised of innovative businesses that seek to create benefit for society and the environment in addition to profit for shareholders. Businesses that ascribe to the Benefit Corporation principals on average donate higher amounts of money and provide greater volunteer hours to charitable causes than traditional businesses. Benefit Corporation legislation has little to no cost to the state, but can provide Michigan new tools to attract investment dollars for a growing sector of the economy.
As a business leader in this new economy, I want the legal protection, currently not afforded under the Michigan corporate code, to pursue a higher corporate purpose rather than simply maximizing shareholder value. Importantly, companies like mine seek to do far more than simply pick a single charity or environmental task to improve our image (often called "green washing"). Benefit Corporation legislation contains the general public benefit provisions that ensure consumers, investors, and policy makers the ability to clearly distinguish companies like ours from those doing something more narrow for marketing purposes.
Benefit Corporation legislation also provides additional accountability to shareholders by redefining the fiduciary duty of directors. To ensure increased transparency to shareholders and the public, Benefit Corporations are also required to assess their overall social and environmental performance against a third-party standard. By doing so, the company and all its stakeholders are made aware of how well the Benefit Corporation is doing relative to independent, credible, transparent, and comparable standards. Markets thrive on clarity and transparency, and these third-party standards provisions create a level playing field and a more efficient and effective marketplace.
Benefit Corporation legislation is now law in Maryland, Vermont, Virginia, Hawaii, and New Jersey and has passed both houses of the New York State Legislature. Benefit Corporation legislation has also been introduced and is progressing rapidly in California, Pennsylvania, and North Carolina. It has attracted strong bipartisan support in every state, because it is entirely voluntary and has no budget impact. I hope you will SUPPORT SB 359 (Jansen), SB 360 (Jansen)/HB 4615 (Schmidt), HB 4616 (Barnett) Benefit Corporation legislation.
Sincerely,