Last year, California passed legislative to establish the structure of Benefit Corporations – a legal business structure that combines social issues with business efforts. The law took effect January 1st, 2012 and Yvon Chouinard was first in line at the Secretary of State’s office. His company, Patagonia, is an outdoor clothing, apparel, and equipment enterprise that stands for environmental compassion. The company donates portions of profits towards environmentally friendly causes and since 1986, releases statements on which chemicals are used in their product production.
With the start of the new year, California became the seventh state in the United State to pass Benefit Corporate legislation. Often confused with B-Corps, Benefit Corps are the legal entity recognized by states. They looking beyond the traditional goal of maximizing shareholder value and strive to create positive footprints on society and the environment. Read more about Patagonia and California’s new laws at The LA Times.