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Name Professor Module Date Benefit Corporation and Low-Profit Limited Liability Company (L3C) In today’s world, people are becoming creative in forming businesses that have a different approach from the contemporary sole agenda of making profits. These businesses have been instrumental in improving the environment…
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Download file to see previous pages When relating this to personal life, it is evident that the world created a lot of pollution that has resulted in climatic changes. However, with the induction of such businesses, the world has been recording impressive performance in regard to pollution. As a matter of fact, this has heightened the activities which are geared towards improving the world. This has taught people that they can have different approaches in accomplishing their missions. For example, many businesses have enhanced their sustainability though they are engaging in society responsibility. Similarly, it has taught people to embrace better ways of production while reducing pollution and environmental hazards. The most common business formation in the recent times is the Benefit Corporation. This is a business that is formed by entities whose first objective is not to realize financial profits but to fulfil ethical goals such as transparency and accountability. These businesses are formed to consider the good of the society as well as the environment. Benefit corporations have redefined what is considered as being a successful company in the present climate that supports transparent and ethical business practices. With such preparations, the corporation is likely to reflect a positive impact on the community and the society (Pakroo 12). In terms of the impact on society, a benefit corporation is accountable to general public and issues an annual benefit report. The consumers and the general public then use the results of the corporation to determine if the benefit company has had a positive impact on its society (Lyons 10). After these, the public has to agree or disagree if there has been positive impact on the community. On the other hand, there has been formation of the low profit limited liability corporations in the world. This type of business aims to limit the gap between for-profit business and non-profit business entities. There are some businesses that are solely formed make profits, while others are formed without any interest in realizing profits. However, low profit limited liability companies have structured investments in an environment that is socially beneficial. Consequentially, they factor benefits of profitability while complying with the revenue collecting bodies which reinforce the national government's revenue generation while also functioning in the capacity of debt collectors. The only difference is that, L3c’s do not seek to consolidate their revenue. Therefore, they will work under the legal frame work and tax acceptance to run the businesses. Most of these corporations rely on market positions, branding, and the positivity accrued from social enterprising methods such as advertising. There are a number of reasons for formation of these corporations. First, there are limited numbers of companies that are formed solely to provide social benefits. Therefore, there is a limited supply of such services, yet, they are vital in running an economy. Apparently, most companies are formed for the sole purpose of realizing profits. As such, they will maximise their revenue and not participate in activities that bring social benefits to the society. Therefore, supporting the formation of such companies is of greater benefit to the society (Lyons 9). So, they will be able to benefit from the products and services of these upcoming companies. Without such an approach, it is possible that there will be no social ...Download file to see next pagesRead More
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