Answer:
Benefit corporations differ from traditional corporations in three main ways. The main purpose is to benefit the public , so directors must consider the impact of their decisions on society and the environment. Shareholders have an additional right of private action, called a benefit enforcement proceeding , that allows them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual benefit report on its performance and include a third-party standard of assessment.
Explanation:
For-profit organizations whose aim is to benefit the public as a whole rather than the limit number of shareholders are known as Benefit corporations . The company takes a view of a larger picture when making decisions because the directors of the company consider the impact of their actions on the environment, public, and society as a whole.
Therefore, shareholders through benefit enforcement proceeding can enforce the corporation to pursue the stated objectives.
