Charleston, WV - West Virginia Senate Majority Leader John Unger, (D-Berkeley), announced today the introduction of Senate Bill 374 authorizing the formation of benefit corporations in the state.
“The legislation authorizes the formation of a for profit corporation that is also pursuing socially responsible purposes,” said Senator Unger, “This would allow social entrepreneurs and innovative companies to make a profit while making a positive change in this state.”
A benefit corporation would be required by law to create a general benefit for society, as well as for its shareholders. Its objective would be to create a material positive impact on society, while also considering how decisions affect employees and local communities.
Benefit corporations would not only have a profit-driven component, but they would also have a social conscience. They would take more than the fiscal bottom line into account when making decisions that affect the community.
Existing companies may also convert to benefit corporations in order to pursue social benefits.