Rep Clemens' HB757 Lets Corporations Be Rewarded For Giving Back

LAKE WORTH, Fla. -- Just in time for the holidays, Rep. Jeff Clemens (D-Lake Worth) has filed House Bill 757, establishing a new category of corporations in the state of Florida that will allow those corporations to be rewarded for service to the community, charity, environmental responsibility and civic responsibility.

Florida would become the eighth state to register Benefit Corporations, or B-Corps. The legislation has passed unanimously in Maryland and New Jersey, among others, where Republicans and Democrats sponsored bills to enact the new corporate category. The bill recognizes that government and non-profits alone cannot solve society’s problems, and that business can be a driving force for positive change.

“Investors want to put their money with companies that have a proven record of giving back to the community,” Clemens said. “This is a great way to increase stockholder value for these companies, and see a boost in their stock price.” The Benefit Corporation certification, which is completely voluntary, allows corporations to be judged on not only the bottom line but on their contributions to society as a whole. As a result, B-Corps tend to be valuable investment properties for those who like to own pieces of companies that give back. Stock prices of B-Corps inevitably climb higher when they become certified.

In early America, states chartered corporations for specific public purposes, such as building bridges and roads. Over time, corporations evolved away from the public purpose model to one that focused on profit alone. The voluntary B-Corp program would allow companies that choose to change their business model to focus on contributions to the community and profit simultaneously.

‘This is about allowing the owners of a corporation to redefine what success means for their business,” Clemens said. “It doesn’t have to just be about profits alone, but also how you impact society as a whole.”