Denlinger B-Corp Bill Heads to Governor
HARRISBURG – The state Senate today voted unanimously to approve House Bill 1616, legislation authored by Rep. Gordon Denlinger (R-Lancaster), that would promote the creation of Benefit Corporations in Pennsylvania.
The Benefit Corporation class (B-Corp), an idea that has been successfully implemented in seven other states, redefines the fiduciary duty of a corporation’s directors so they are permitted to take non-financial interest – i.e., fighting hunger or curing diseases – into consideration when making decisions for the corporation.
“In a typical for-profit corporation, the duty of the organization’s executives is to generate profits and maximize stock values for shareholders,” Denlinger said. “B-Corps direct the entrepreneurial drive of American businessmen and businesswomen to aggressively address social and environmental problems without the waste and procrastination that often plague government programs that have similar goals.”
In today’s challenging economy, charitable causes and nonprofits need support more than ever, and the B-Corp structure provides the option for interested companies to make a positive societal impact on their communities and include those “for benefit” operations as part of their corporate mission.
“By expanding a corporation’s legal structure to allow directors to make decisions for the good of society, and not just to maximize shareholder profits, consumers are able to support businesses that align with their values,” Denlinger said. “With all the emergency disaster relief work and missions to third-world nations that are based in our Commonwealth, and in Lancaster County in particular, this measure will allow these efforts to multiply and help even more people and programs as more companies develop their own B-Corp programs. I look forward to Governor Tom Corbett signing the bill into law and he has given me every indication that he will do so soon.”
Currently, B-Corp legislation has been enacted in 11 states, including Maryland, Vermont, New Jersey, Virginia, Hawaii, New York and California.
For information visit www.bcorporation.net
State Representative Gordon Denlinger
99th District, Pennsylvania House of Representatives
Media Contact: Charles Lardner