More entrepreneurs want to be socially responsible these days, but fear a negative impact on profits, growth, and the ability to find an investor. In the short run, there are real costs associated with the “triple bottom line” of maximizing profit, people (social), and planet (environment). But very quickly, it is becoming obvious to startups that the value and satisfaction exceeds the costs.
To legally facilitate startups who want to give top priority to socially conscious solutions, seventeen states, starting with Maryland in 2010, have passed legislation allowing incorporation as a Benefit Corporation (B-Corp). The B-Corp status is meant to reduce investor suits, and gives consumers an easy way to spot genuine social commitment, without assuming it is a non-profit.
