Civic News
Communities / Entrepreneurs / Investing / Municipal government

Why Delaware’s new public benefit corporation law matters

The amendments, which ultimately encourage social enterprise, were recently approved by Gov. Jack Markell. Silicon Valley lawyer and entrepreneur John Montgomery explains why that's good news.

Gov. Jack Markell. (Photo by Flickr user Jeffrey, used under a Creative Commons license)

Effective August 1, amendments to Delaware’s public benefit corporation law will make it easier for corporations to become socially conscious.
As Silicon Valley lawyer and entrepreneur John Montgomery writes on LinkedIn Pulse, current Delaware corporate law “makes it difficult for its corporations to legally pursue a heroic purpose, become sustainable or become leaders in corporate social responsibility.” (We delved into some of these issues, relating specifically to B Corps, on our sister site, Philly.)
The amendments, approved by Gov. Jack Markell last week, carry significant weight for the seemingly endless stream of businesses incorporating in Delaware. Whereas Montgomery writes that it was nearly “illegal to do the right thing” before, the new amendments will not only make corporate social endeavors legal, but encouraged.
Read into on the effects the amendment will have on corporations here.
“It turns out that doing business this way is more profitable,” Montgomery writes. “The preliminary economic data indicates that corporations built with principles of sustainability, such as those embodied by the benefit corporation, out perform their conventional peers and provide a better rate of return to investors.”
Read the full story

Before you go...

Please consider supporting to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!


How to encourage more healthcare entrepreneurship (and why that matters)

Find out what type of heat wave you’re really in for with NOAA’s HeatRisk dashboard

How AI can revolutionize education's quest for truth

Welcome to Camp Apple Intelligence

Technically Media