This article discusses benefit corporations, a new business model where companies are legally required to consider social and environmental impacts, not just profits. The author proposes that more companies adopt this model to shift away from the current "profit at any cost" approach. Benefit corporations have been established in several states and must demonstrate their positive impacts regularly to maintain their status. This model could benefit businesses by protecting them from lawsuits if they prioritize other factors over profits. It also increases transparency about a company's operations for various stakeholders. The article argues this model promotes employee and investor loyalty by aligning financial and ethical goals.

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This article discuses one of several ideas on how to improve the economy by changing the way
business is traditionally done. The author begins the article by mentioning that when the country was
founded corporations were charted for the public good. They could earn profits as long as they did not
deviate too far for the public good. This is a stark contrast compared to today's profit at any cost
mentality of today. (Raskin, 2011)
The solution that the author proposes is that more companies join what is called a Benefit
Corporation. These entities goal is to make a positive impact on society and the environment. This idea
has been written into law in Maryland, New Jersey, Virginia, and Vermont. Their mission statements
promote such things as bringing local rivers back to life, provide affordable housing, assist animal
adoptions or adult literacy. On a regular basis they must go to a third party to have their B corp status
reinstated. (Raskin, 2011)
One of the many benefits for business under this model is that they are not held liable in a court
for placing profits over everything else. The affect this would have is business are less inclined to
choose morality over profits in the event of a corporate takeover. Another benefit to this business
model is that it clearly shows shareholders, employees, business partners, and consumers about how
the business is being operated. (Raskin, 2011)
This business model relates to this class in many ways. One aspect involves employee loyalty
to the companies. That is because many of the B corps are owned by the workers such as the King
Arthur Flour in Vermont. This is the best example of how an employees commitment is tied to the
organization and the employees are likely to make personal sacrifices for the company. (Raskin, 2011)
(Ferrell/Fraedrich, 2008)
Another way that these B corps relate to the course material is that they contribute to investor
loyalty. On an annual basis these B corps earns the revenue of $4.5 billion. Investors look at the
bottom line, which is money. If a company has an ethical culture then they will receive positive

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publicity and that will make them look more attractive to having more investors. (Raskin, 2011)
(Ferrell.Fraedrich, 2008)
I am not much of an economics expert, but I like this idea based on what is presented. Many
proposals in the business world and life look good on paper, but not so much when put into application.
However, I think this country is ready for a paradigm shift because the current efforts to boost the
economy are not working. At this point I think most people would give just about anything a try in the
endeavor to rebuild America's economic structure.