Can Conscious Capitalism Be More Effective?

(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

(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

(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

(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

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

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

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]

How Kickstarter Used Law to Turbocharge its Heroic Purpose

Kickstarter transcended the prevailing corporate law to protect its soul. Kickstarter became a global leader in corporate governance and business as a force for good when it became a Delaware public benefit corporation this week.  By embedding its charter in Article III of its Certificate of Incorporation, Kickstarter put the full power of corporate law behind its ultimate purpose and social and environmental goals.  Under… [Continue reading this post]

How Prevailing Corporate Law Corrupted Etsy’s Heroic Purpose

Etsy sold its soul for a lower corporate tax rate. Etsy forfeited its opportunity to be the global leader in corporate governance and business as a force for good when it availed itself of clever Irish tax strategies to reduce its overall corporate tax rate.  By transferring its intellectual property to an Irish subsidiary, Etsy will reduce its tax rate on future profits derived from… [Continue reading this post]

How Pope Francis Is Resetting the Global Context for Capitalism

It’s no secret that Pope Francis has challenged capitalism to take better care of our planet and its people. He lays much of the blame for global warming, degradation of the environment and various social injustices squarely on the global economic system, which he says gives priority to speculation and financial gain while failing to take into account its effects on human dignity and the… [Continue reading this post]