University of Denver Law Review Online Supplement
There is a global movement to encourage business entities to pursue social and environmental goals in addition to the traditional financial goals of for-profit entities. Current legal structures, however, make this difficult. To address this issue, the Colorado legislature will consider the Colorado Benefit Corporation Act (the “CBCA”). This article discusses how the CBCA addresses the two primary concerns of socially-responsible entrepreneurs – branding and the ability to pursue non-financial goals – and suggests changes that would greatly improve the CBCA’s effectiveness. This article begins by discussing the characteristics of traditional legal entities chosen by socially-responsible entrepreneurs, and details reasons that these entities are not sufficient to address the arguments. This article then discusses the CBCA, and suggests eliminating a weak provision that makes the CBCA unnecessarily burdensome and proffers some changes that would render the CBCA more responsive to the needs of socially-responsible organizations and entrepreneurs.
Amarante, Eric Franklin, "The Colorado Benefit Corporation Act’s Missed Opportunities" (2012). UTK Law Faculty Publications. 213.