Monday, April 30, 2018

Social Enterprise and the Traditional For-Profit Corporation

My essay on the use of traditional for-profit corporations as a choice of entity for sustainable social enterprise firms was recently published in volume 86 of the UMKC Law Review.  I spoke on this topic at The Bryan Cave/Edward A. Smith Symposium: The Green Economy held at the UMKC School of Law back in October.  The essay is entitled "Let's Not Give Up on Traditional For-Profit Corporations for Sustainable Social Enterprise," and the SSRN abstract is included below:

The past ten years have witnessed the birth of (among other legal business forms) the low-profit limited liability company (commonly known as the L3C), the social purpose corporation, and the benefit corporation. The benefit corporation has become a legal form of entity in over 30 states. The significant number of state legislative adoptions of new social enterprise forms of entity indicates that policy makers believe these alternative forms of entity serve a purpose (whether legal or extra legal).

The rise of specialty forms of entity for social enterprise, however, calls into question, for many, the continuing role of the traditional for-profit corporation (for the sake of brevity and convenience, denominated “TFPC” in this essay) in social enterprises, including green economy ventures. This essay argues that TFPCs continue to be a viable—and in many cases desirable or advisable choice of entity for sustainable social enterprise firms. The arguments presented are founded in legal doctrine, theory, and policy and include both legal and practical elements.

Somehow, I managed to cite to four BLPB co-bloggers in this single essay: Josh, Haskell, Stefan, and Anne.  Evidence of a business law Vulcan mind meld?  You decide . . . .  

Regardless, comments, as always, are welcomed as I continue to think and write about this area of law and practice.

https://lawprofessors.typepad.com/business_law/2018/04/social-enterprise-and-the-traditional-for-profit-corporation.html

Anne Tucker, Business Associations, Corporate Governance, Corporations, Haskell Murray, Joan Heminway, Joshua P. Fershee, Social Enterprise, Stefan J. Padfield | Permalink

Comments

I was very happy to see the work from our earlier BLPB UT conference generate further discussion, and I look forward to digging into this piece more deeply. Thanks, Joan! As for a Vulcan mind meld, is “Business Law Prof Blog Borg” too ominous?

Posted by: Stefan Padfield | May 1, 2018 11:48:59 AM

I love the BLPB Borg idea. We need to use that somewhere . . . . Hmm.

And yes, the work that we did together last fall here in Knoxville continues to generate ideas. So happy and proud to work with so many bright, engaged law profs. Really a privilege.

Posted by: joanheminway | May 1, 2018 1:02:12 PM

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