Why Laureate Education’s IPO Matters to Silicon Valley

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Laureate Education just made it safe for entrepreneurs, lawyers and venture capitalists to incorporate and build startups as benefit corporations. After 18 months in registration, Laureate Education went public on February 1, 2017 as the first publicly listed benefit corporation. By completing its IPO and raising $490 million, Laureate Education legitimized this seven year old corporate form. With Credit Suisse, Morgan Stanley and Barcley’s as lead… [Continue reading this post]

How the Benefit Corporation Could Help President Trump Make America Greater

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I edited President Trump’s inaugural address below because he senses that something is not quite right with corporate America but does not name it. He persuaded Carrier to keep a factory and its jobs in the US and not move them to Mexico. He is wrangling cost concessions from Lockheed-Martin on the most expensive fighter jet program ever. He threatens to impose tariffs on the… [Continue reading this post]

From Good to Great to Discourteous: How Wells Fargo Can Be Great Again

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(originally published on Linked In on September 29, 2016) Wells Fargo Bank was one of America’s best companies. Jim Collins profiled Wells Fargo in Good to Great. Legendary value investor Warren Buffet owns approximately 2,000,000 shares and his Berkshire Hathway holds a 9.5% stake in the company. Wells Fargo easily weathered the financial crisis of 2008 and its quality of management was rewarded with a… [Continue reading this post]

Can Conscious Capitalism Be More Effective?

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(originally published on Linked In on September 6, 2016) Conscious Capitalism espouses a multiple stakeholder, multiple purpose approach to business within the constraints of a single stakeholder, single purpose legal system. It works, but the fit is not optimal. The benefit corporation appears custom-made to liberate the Conscious Capitalism movement from these constraints because it legitimizes a multiple stakeholder, multiple purpose approach to business. Conscious… [Continue reading this post]

What Corporate Lawyers (and Directors) Need to Know about the Benefit Corporation

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(Originally published on Linked In on August 12, 2016) If you’d like to become expert in the newest evolutionary corporate form—the benefit corporation—and master the delicate board and stockholder politics that arise when your clients adopt this new entity, then this post is for you. This post, which was one of five articles about the benefit corporation in the July edition of the American Bar… [Continue reading this post]

What the World’s Largest Cooperative Corporation Has to Teach Capitalism about Solving Social Inequality

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(originally published on Linked In on August 2, 2016) After the First European B Corp Summit in Rome, I flew to Basque Country in Spain to visit the world’s largest cooperative corporation, Mondragon. Silicon Valley has had some legendary founders -William Hewlett and David Packard of HP, Steve Jobs of Apple, Sergey Brin and Larry Page of Google – but Mondragon’s founder, Juan Maria Arizmendiarreta,… [Continue reading this post]

What Brexit? European B Corps and the New Economic Paradigm

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(originally published on Linked In on July 10, 2016) After the UK’s stunning Brexit vote, I expected a somber mood at the First European B Corp Summer Summit in Rome last week. Instead, I joined 150 attendees from Europe’s 170 Certified B Corps celebrating their community and the joys of co-creating a more humane approach to business. Our group in Rome, including the Brits, was… [Continue reading this post]

Why I Will Vote “No” on the Pfizer-Allergan Deal

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If you are a business owner or leader and are as disturbed as I am about the values expressed by inversion transactions such as the Pfizer-Allergan deal, you can take the Proud to be an American Business Pledge offered by the American Sustainable Business Council. I was still mourning the end of another Great company when the Pfizer-Allergan inversion was announced. When it comes to… [Continue reading this post]

Wall Street Meets the Benefit Corporation

man at podium

Laureate Education will likely make history as the first publicly listed benefit corporation in the US. Already the global leader in higher education with approximately 1,000,000 students enrolled in 88 institutions in 28 countries, Laureate also became a leader in corporate governance and business as a force for good in October when it re-domiciled as a Delaware public benefit corporation and filed an S-1 to… [Continue reading this post]

How to Save Volkswagen with Corporate Law

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Volkswagen is in a death spiral. The US Environmental Protection Agency alleged that Volkswagen falsified US pollution tests by installing software to make its diesel vehicles appear cleaner than they were when being tested. Without the defeat devices, the cars would produce up to 40 times the allowed level of nitrogen oxides. Volkswagen knowingly installed defeat devices in approximately 480,000 diesel vehicles sold in the… [Continue reading this post]