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What is a Benefit Society?

Benefit companies are companies whose main goal is not only profit generation but also social and/or environmental well-being. In other words, these entities aim not only to make an economic profit, but to increase the social and environmental well-being of the communities in which they operate.

>>Read more about our transition to a benefit society

Benefit companies are a specific corporate legal form (regulated by Law No. 208 of Dec. 28, 2015-the 2016 Stability Law). All corporate forms under the Civil Code can become one, provided that they are committed by their articles of incorporation to undertake actions that improve social and environmental well-being, to be reported through annual impact reports.

S.B.’s must still be for-profit, as nonprofits turn out to be governed by specific legislation, operating yes in support of sociality, but also working at a “cost” to the state because of the many tax breaks they enjoy. This is why this legal form has been limited to companies that are exclusively for profit, and thus (theoretically) able to operate on a break-even basis.

These enterprises use their business to create positive impact by adopting sustainable practices and contributing to sustainable land development. For example, they may invest in projects that promote education, health, or clean energy, or they may implement sustainable business and human resource management practices. Benefit companies can also be certified by third-party organizations that verify their implementation of social and environmental standards. These certifications serve as further proof that companies are indeed living up to their social and environmental commitments.

Fun fact: The best-known certification is the B Corp certification issued by B Lab; often “benefit corporation” and “B Corp” are improperly used as synonyms.

Benefit companies are becoming increasingly popular as more and more consumers are looking for companies that share their values and care about their impact on society and the environment, going beyond economic progress as an end in itself.

Ultimately, B.S. is a way to combine business success with social and environmental engagement. Through their business, these can create a positive impact and contribute to a more sustainable future for all.

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