Why Does the Delaware Public Benefit Corporation Matter to Silicon Valley?

Ultimately, it’s about money and making more of it. But before we get to the money, let’s talk about the benefit corporation, which is rapidly gaining market acceptance. 30 states and DC have adopted benefit corporation legislation since Maryland passed the first benefit corporation law in 2010. Similar legislation is pending in 10 other states and there are now more than 2,000 benefit corporations in… [Continue reading this post]

Why Does Etsy’s IPO Matter to Silicon Valley?

The B Economy moved into Silicon Valley last week when Etsy became the second listed US Certified B Corporation.  Brooklyn based Etsy’s successful IPO priced at $16 on April 15 and closed its first day of trading on April 16 at $30. The shares of Palo Alto’s Accel Partners, Etsy’s lead investor, increased approximately $325,000,000 in value on the first day of trading. The B… [Continue reading this post]

Etsy Courageously Half-Stepped its Talk

Etsy filed its “Red Herring” prospectus on Tuesday and began its IPO roadshow yesterday. There is good news and bad news…. The good news is that Etsy will become the second publicly traded Certified B Corporation in the US. CEO Chad Dickerson’s inspiring letter on page 91 of the prospectus (see www.sec.gov and search for Etsy) challenges the conventional business wisdom of Wall Street by… [Continue reading this post]

Will Etsy Walk its Talk?

Etsy, the online marketplace for unique goods, recently filed a registration statement with the SEC to go public. The company has a golden opportunity to become the world’s first publicly traded benefit corporation and enjoy first mover advantage as the immediate global standard-bearer of business as a force for good. Esty would not only become the world’s third publicly traded Certified B Corporation but would… [Continue reading this post]

A Giant Step Forward for Sustainability and Human Consciousness

August 1, 2013 marks a giant step forward in the creation of a sustainable global economic system and in the evolution of human consciousness. Delaware just raised the global standard for corporate responsibility with its new public benefit corporation law. The law, which goes into effect today, authorizes the formation of corporations endowed with a comprehensive corporate conscience that protects the interests of society and… [Continue reading this post]

Delaware Proposes Historic Benefit Corporation Legislation

The Delaware Bar has just released proposed benefit corporation legislation for Delaware. The Delaware Bar’s embrace of draft benefit corporation legislation signals a seismic, global shift in corporate law. The proposed legislation will create a new corporate form which ensures the pecuniary interests of shareholders while also providing a general public benefit which considers the interests of both society and the environment. Delaware is quietly… [Continue reading this post]

What Would the Founding Fathers Do about Corporate Persons?

My friend Nilofer Merchant, author of The New How, told me that the real purpose of her book on collaboration didn’t become apparent until she started to give author talks. She noticed that all of her audiences asked the same question: how could they transform their top-down approach to strategic planning and execution into collaborative “stratecution” Her book was really about Stratecution. Nilofer’s advice was… [Continue reading this post]

What if Goldman Sachs Could Become a New York Benefit Corporation?

From the outside, it’s impossible to assess the accuracy of the recent public statements of Greg Smith, a former Goldman Sachs executive director, about the demise of the Goldman Sachs culture.  Only Goldman Sachs’ insiders know whether or not the firm’s culture, which, as highlighted in its IPO prospectus in 1999, emphasized “placing our clients’ interests first”, has devolved to the point that “the interests… [Continue reading this post]

What the Heck is a Conscious Corporation?

Let’s unpack the adjective “conscious” before answering this question. Some basic Webster’s definitions of conscious are “aware; cognizant”, and “knowing what one is doing and why”. Consciousness, then, is “the state of being conscious”. On a personal level, being conscious is a matter of degree; being unconscious or dead is at one end of the spectrum and being enlightened is at the other. It’s safe… [Continue reading this post]

Developing a Corporate Conscience

As Justice Stevens said in Citizens United v. Federal Election Commission, “the corporation has no conscience”. Our founding fathers did not anticipate the proliferation of corporations. The Constitution and Bill of Rights did not address the rights and responsibilities of corporations. This has been left largely to the Supreme Court, which has gradually endowed the corporation with many of the rights of personhood, without addressing… [Continue reading this post]