The Rise of Benefit Corporations: Show me the Money…and the Good

A large cardboard box with a hole in the top is labeled to accept donations for a book drive sponsored by the organization Better World Books.The “Benefit Corporation” is a new corporation class and it may be coming to a state near you (if it hasn’t already).  A benefit corporation (colloquially referred to as B-corp) is an entity type that seeks to blend profit and purpose.

In 2010, Maryland was the first state to adopt a benefit corporation law.  Since then, about 30 other states have followed suit. As of October 2017, the Wisconsin legislature had a bill under consideration to create a benefit corporation statute.

What Exactly Is a Benefit Corporation?

Benefit corporations seek to create a material positive impact on society and the environment. These companies focus beyond the entrenched corporate purpose of profit maximization.  Most states with benefit corporation statutes base these laws on the Model Benefits Corporation Legislation.  Benefit corporations are required to (a) espouse a general/specific public benefit, (b) be accountable, and (c) be transparent.

This pursuit of public benefit could take various forms, such as: providing low-income communities with beneficial services; preserving the environment; improving human health; promoting the arts; or any other nonpecuniary purpose that could be of benefit to society or the environment.

For example, Better World Books, a benefit corporation, is an online book retailer that sells used and new books.  For every book sold, it gives a percentage of its funds and unsold books to literacy foundations across the globe.  Some other famous companies who have decided to go the benefit corporation route include Kickstarter, Etsy, and Ben and Jerry’s.

Benefit corporations are usually required to have some measure of accountability. This often entails measuring the provision of the corporation’s stated public benefit goal against an independent third-party standard.

Most benefit corporation statutes also require specific disclosures. Corporations are required to provide an annual benefit report to their shareholders regarding the corporation’s success or failures in delivering the espoused public benefit. 

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Public Hearing to Address Judicial Recusal Rules

Logo with the words "Access to Justice" over the ops of photos of Louis Butler, Mike Skwierawski, Ed Fallone and Jay Heck.On Wednesday night, October 11th, the non-partisan organization Common Cause in Wisconsin is holding a town hall meeting/public hearing entitled “Access to Justice.” Co-sponsors of the event include the League of Women Voters of Wisconsin, the League of Women Voters of Milwaukee County, and the American Association of University Women of Wisconsin.  This free event is open to the public and will take place October 11 from 6:30PM to 8:00PM at Marquette Law School in the Appellate Courtroom (Main Level).  Marquette University Law School is not a sponsor of the event.

The focus of the event will be the recusal rules that the Wisconsin Supreme Court has adopted for our state judiciary.  Wisconsin’s current state recusal “non-standard” was written by the lobbyist organization Wisconsin Manufacturers & Commerce in 2010. The current rule essentially states that judges may decide for themselves whether to recuse themselves in a case involving a donor or special interest group who made campaign contributions to that judge.

This past April, the Wisconsin Supreme Court discussed a petition by 54 retired Wisconsin judges to establish reasonable thresholds for recusal of trial and appellate judges when they receive campaign contributions from a defendant or plaintiff – or if they benefited from spending by an “outside” special interest group involved in a case before their court.  The State Supreme Court voted 5 to 2 to reject this petition, and the Court did so without any input from the public.

The purpose of Wednesday night’s event is to educate persons in attendance on the issue of judicial recusal rules and to seek public input on possible reforms.  I will be one speaker at this event, along with former State Supreme Court Justice Louis Butler, former Milwaukee County Circuit Court Judge Michael Skwierawski, and Jay Heck from Common Cause.

Again, this event is free and open to the public.  I hope to see you there.

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Falling Leaves, Rising Stress Levels (Redux)

sidewalk with fall treesFall in Wisconsin is a particularly beautiful time of the year. Crisp morning air, warm if windy afternoons, beautifully colored leaves, all things pumpkin spice. . . . (Okay, pumpkin spice is not exclusive to Wisconsin, but it is very fall-like.)

But law students may not be noticing the crisp mornings or the changing leaves because they’re huddled in the law school or the library or their homes trying to catch up on their class readings and thinking about outlining and worrying about their summer job search. It’s the time of year that law students begin to more acutely feel the stress of law school.

I wrote about falling leaves and rising stress levels exactly six years ago today, and what I said then about law school stressors still holds true today. But this morning I noticed my colleague Rachel Gurvich from University of North Carolina School of Law also posted on the “October slump” in law school, particularly focusing on 1Ls. She offers seven specific tips to help 1Ls get through this hectic time: (1) Understand that law school is a marathon, not a sprint; (2) remember that hard work alone doesn’t necessarily correlate with success; (3) you do you; (4) enjoy activities outside of law school; (5) make some friends in law school; (6) tune out external noise about law school “success”; and (7) talk to your professors.

Professor Gurvich’s seven tips are spot on and deserve a look, so take a break from your work and give her post a read.

And remember, this, too, shall pass.

 

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