Public Benefit Companies

I’ve been hearing more and more about companies formed as PBCs (Public Benefit Companies). I finally took the time today to read a light legal explanation of the model.

In contrast with other for-profit entities, which by law must focus exclusively on increasing investor returns, a PBC is required to consider other factors. A PBC’s charter identifies a public benefit, namely a positive effect or reduction of negative effects flowing to stakeholders, that is “artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, or technological” in character. When making business decisions, in addition to considering the value to shareholders, PBCs also must consider other stakeholder interests, which may include employees, customers, certain communities, or the environment.

full text:

I like designs and models that ensure the right kinds of perpetual tension, the right kinds of ongoing and repeating questions.

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