Benefit Corporations: God’s Timeless Direction Becomes en Vogue
“The noble vocation of business leaders will be evident in the measure that all human activity becomes a witness of hope . . . through each person’s wise use of his or her talents and abilities” (Pope Francis, Letter to Participants in the 26th World Congress of the International Christian Union of Business Executives, 2018).
As Catholics, we have always been called to live out our faith in every area of our life, including business and money matters. As Biblical people, this means using wealth and power for Godly purposes (Deuteronomy 8:17-20), caring for workers (Genesis 2:3, Exodus 20:8-11, Deuteronomy 24:14-15, Luke 6:31), supporting our community (Deuteronomy 14:28-29, Psalm 37:21, Proverbs 28:27, Romans 12:6-8), and being a steward of the environment (Genesis 1:26, Genesis 2:15).
Long before it was popular to use business as a force for good, we were cautioned, “What profit is there for one to gain the whole world and forfeit his life?” (Mark 8:36). In recent years, business leaders have been encouraged to broaden their organization’s purpose by forming benefit corporations.
What Is a Benefit Corporation?
The benefit corporation is a new type of legal business entity designed to pursue both for-profit and non-profit objectives. It is recognized by many states. In brief, leaders of benefit corporations are required to run their business differently than leaders of traditional corporations by:
Having a mission that commits to a public benefit.
Governing in a way that takes into account the interests of non-shareholders, such as employees or the community.
Providing transparency regarding the corporation’s benefit performance.
Encouraging accountability through shareholders’ enforcement of the corporation’s benefit mission.
It is important to note that similar terms such as “benefit corporation,” “B corporation,” and “certified B corp” are often used interchangeably; however, there are differences. While a benefit corporation is a generic term for an entity that must meet state specific requirements, the label B corp often refers to a certification given by third-party organizations that have their own standards. The label is also often used in marketing. Although there are several organizations that provide such certifications, none is required for a company to be a legally recognized benefit company as long as it meets applicable state requirements.
God’s Word Is the Dependable Standard
Our divine teacher and mentor provides instructions that we, as businesswomen, should turn to first before seeking any other seal of approval, “so that [our] faith might rest not on human wisdom but on the power of God” (1 Corinthians 2:5).
Although there is much chatter about what makes a socially and environmentally responsible business leader, what new groups and online media deem to be good today may not be viewed as good tomorrow. The Word of God, however, does not change. It was good when it was written. It is good now. And it will be good years from now. Therefore, our approach to conducting business should first model God’s Word.
Although it may make sense to pursue becoming an officially recognized benefit corporation, small business owners may prefer less formal approaches. Owners may set forth in their mission statements the intention to operate the business under God-centered principles and related objectives to benefit their community. They may also dedicate space on their website to highlight their calling to use their business to further God’s purposes.
As Catholic businesswomen, we are constantly reviewing and evaluating whether our behavior is aligned with our faith. To better prepare ourselves to meet the challenges of each day, prayer is an integral part of sound decision-making.
“But if any of you lacks wisdom, he should ask God who gives to all generously and ungrudgingly, and he will be given it” (James 1:5). If we stay close to God’s Word, our work, products, and services will provide the social and environmental benefits that God has called on us to contribute long before those objectives became a modern business approach.
Linda A. Burrows is an attorney specializing in trust and estate law in southern California. She studied journalism at Cal Poly, San Luis Obispo, law at Pepperdine, and is currently pursuing a masters in tax law at Georgetown. Linda is the founder of Soul Soda, a non-profit with the mission of refreshing faith in those, particularly Catholics, who are feeling disconnected from their religious roots. She is a wife and mother of three teens. Linda’s Confirmation name was that of St. Gabriel the Archangel.