Benefit corporation law is a critical tool to allow private capital to be invested in a manner that creates shared and durable value for everyone. But a tool is only as good as the person who uses it. As highlighted in Rick Alexander’s essay, shareholders must understand the value of firm commitment, and, more importantly, the ultimate source of wealth for universal investors, which is thriving financial markets and a healthy, peaceful, and prosperous planet. These goals can only be attained and maintained for the long term if private capital is allocated and invested in a manner that creates value for everyone. So investors must learn to use benefit corporation law as a tool to require the companies they own to create value in a responsible and sustainable manner.
Bart Houlahan, Andrew Kassoy, and Jay Coen Gilbert, Berle VIII: Benefit Corporations and the Firm Commitment Universe, 40 SEATTLE U. L. REV. 299 (2017).