Rep. Gregg Haddad joined by Lt. Gov. Nancy Wyman and Secy. Of the State Denise Merrill.
October 1, 2014
Rep. Gregg Haddad joined by Lt. Gov. Nancy Wyman and Secy. Of the State Denise Merrill.
State Representative Gregory Haddad joined Lt. Governor Nancy Wyman, Secretary of the State Denise Merrill and members of the business community to proudly announce that legislation establishing “benefit corporations” went into effect on October 1, 2014.
The law creates a new corporate designation called a Benefit Corporation (B-Corp) -- a hybrid between the traditional for-profit business model and the nonprofit model that operates like traditional corporations but with the purpose of making a positive impact on society and the environment. Several new business entities have filed with the Secretary of State’s Office for that new designation.
“As an entrepreneur working in the Windham area and with non-profits across the state, I am proud to say that this new law has anchored my business here in Connecticut. I would have considered moving my business out of state if not for this legislation,” said Christopher Brechlin, owner of Blueprint for Impact. “Gregg Haddad has been such a champion of social enterprise and non-profits. The benefit corporation designation helps solidify my commitment to non-profits as the new business model is more closely aligned with their vision of social responsibility.”
“The law allows corporate management and the Board of Directors to make decisions that balance their responsibilities to the community, their customers and the environment with the need to maximize profits and increase shareholder value,” said Rep. Haddad. “Companies will still make money and deliver a return to investors, but this provides executives with more flexibility in pursuing the true founding goals of a business.”
“B-Corp legislation further demonstrates Connecticut’s commitment to economic development and job growth,” said Lt. Governor Nancy Wyman. “Codifying these entrepreneurs as what they are—good businesses doing good work—is good for the state.”
“This new law encourages those entrepreneurs who want to do well in business while doing good for their community,” said Secretary of the State Denise Merrill. “We are happy to do our part to help businesses get off the ground whose leaders genuinely want to help their communities, earn a profit, and create jobs.”
“This is a significant, happy milestone and we are very grateful. Now our work can turn toward creating a vibrant community of social entrepreneurs in the state, using the power of the free market, along with the hearts and minds of this creative new brand of entrepreneurs to help solve some of our world’s most pressing problem,” said Kate Emery, reSET CEO.
Many in the non-profit community have embraced the concept saying it can support the principles of entrepreneurship and also help solve societal problems.
Haddad also pointed to the popular growth of socially responsible mutual funds, noting that a number of them have outperformed the stock market. According to Consumer Reports, socially-oriented environmental funds Winslow Green Growth (WGGFX) and Portfolio 21 (PORTX) provided double digit returns over the past five years far exceeding the S&P 500 Index.
On October 1, 20 corporations filed for B-Corp status in Connecticut. Connecticut joins 26 other states, including New York and New Jersey, who currently have benefit corporation laws.