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Abstract

One of the fastest-growing areas in business is Socially Responsible Investment (SRI), which incorporates environmental, social, and governance concerns. From 2007 to 2017, SRI increased from USD2.71 trillion to over USD21 trillion, and in 2017, 84% of all millennials were interested in SRI. Given these trends, how should an entrepreneur with a social mission proceed? One of the first decisions is choosing an appropriate legal entity. This technical note presents an array of legal entities that a business with a social mission could consider, with special emphasis on a relatively recent option: the benefit corporation.

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Abstract

One of the fastest-growing areas in business is Socially Responsible Investment (SRI), which incorporates environmental, social, and governance concerns. From 2007 to 2017, SRI increased from USD2.71 trillion to over USD21 trillion, and in 2017, 84% of all millennials were interested in SRI. Given these trends, how should an entrepreneur with a social mission proceed? One of the first decisions is choosing an appropriate legal entity. This technical note presents an array of legal entities that a business with a social mission could consider, with special emphasis on a relatively recent option: the benefit corporation.

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