Social purpose corporation

A social purpose corporation or an SPC is a type of for-profit entity in some U.S. states that enables corporations to consider social or environmental issues in decision making instead of relying only on profit-maximizing goals. The Social Purpose Corporation structure permits consideration of these issues but does not require it.

Although there are no official requirements for social purpose corporations to have a positive social or environmental impact, most of the companies which have registered as social purpose corporations in Washington State, the pioneering state for SPCs, have a focus on social or environmental impacts.[1]

Washington State passed the law for social purpose corporations in 2012.[2] Florida became the second state to adopt social purpose corporations in 2014.[3]

In California, "The amendment, S.B. 1301, changes existing law (found under Corporations Code Sections 2500-3503)[4] to emphasize the social-purpose nature of the FPC, most notably by changing its name to the “Social Purpose Corporation.” S.B. 1301 takes effect on January 1, 2015. On that date, existing FPCs will automatically continue their existence as SPCs.[5]

Social purpose corporations are similar to a Benefit Corporation or a Flexible Purpose Corporation.

References

  1. ↑ http://www.spcwa.com/we_are_spc/list-of-spcs/
  2. ↑ http://www.sos.wa.gov/corps/SocialPurposeCorporation.aspx
  3. ↑ http://blogs.browardpalmbeach.com/pulp/2014/05/doing_good_for_profit_gets_a_b.php
  4. ↑ http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201320140SB1301
  5. ↑ http://www.lawforchange.org/NewsBot.asp?MODE=VIEW&ID=6384
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