Why we need it?
The market for socially responsible investments is expected is expected to reach $32 billion in Australia and US $500 billion to $1 trillion globally, over the next decade.
By introducing the benefit company structure, Australia will become a world leader in advancing business alongside social impact objectives.
Benefit Company Australia
What is it?
Benefit Company status is an opt-in legal framework designed for businesses that meet high standards of corporate transparency, accountability and purpose.
What are the benefits?
By reporting on social and environmental performance as well as the traditional financial indicators, companies give shareholders new information to better monitor not only their profitability but also their culture and ethical stance: as evidenced in their mission and actions.
What will change?
The proposed amendments will allow the option to intentionally and formally expand a company’s purpose and consider a general public benefit- enshrining the triple bottom-line of ‘profit, people and planet’.
The evidence for Benefit Company
Similar reforms have already been agreed to, and introduced, across the majority of US States, Italy and Colombia and is in current contemplation in a range of countries including the UK, Canada, Taiwan, Argentina, Chile and Puerto Rico .
Benefit Company Supporters
PROFESSOR IAN RAMSAY, HAROLD FORD PROFESSOR OF COMMERCIAL LAW
"I support the amendments to the Corporations Act proposed by B Lab Australia & New Zealand that would allow for benefit companies in Australia. These are companies that, while making a profit, have the public benefit of creating a material positive impact on society and the environment."
SIMON O'CONNOR, CEO, RESPONSIBLE INVESTMENT ASSOCIATION AUSTRALASIA
"Benefit company status would make businesses more attractive to investors as it offers protection for company directors to consider society and the environment on equal footing with financial returns, while also offering accountability and transparency around a company’s mission."
ROSE MARCARIO, CEO & PRESIDENT, PATAGONIA
"In Australia, this legislation will create a framework for accountable, transparent and responsible long-term decision-making at the corporate executive and board level and catalyse improved corporate behaviour without sacrificing profit."