Making Change, Not Just Money

This morning NPR flashed a spotlight on an interesting, potentially powerful path ahead for social entrepreneurs – legal protections for double-bottom-line companies. Corporate law currently protects the interests of shareholders and holds companies accountable for maximizing shareholder value – i.e. making money. In this environment, companies that also value social good – environmentally friendly production practices, returning a portion of profits to communities, etc. – often see those values compromised as business success puts pressure on their legal obligations to shareholders. (The NPR story highlights Ben & Jerry’s and Method as case studies.)

Now a working group of California lawyers that includes attorney and blogger Todd Johnson is working to change that. Johnson and colleagues are asking, What if companies could truly mix profitability and mission? Johnson and his colleagues are rewriting laws to recognize “for-benefit corporations” that bridge the gap between the money-generating focus of for-profit entities and the social missions of non-profit organizations. It’s a space we’re watching closely at HopeLab. As Pat mentioned in an earlier blog post, we’re exploring ways to maximize the impact of gDitty as both a commercial product and a mission-driven project to fight childhood obesity.

Read or listen to the full story at NPR.org: Protecting Companies That Mix Profitability, Values