What is primarily assessed in a Benefit Corporation?

In a Benefit Corporation, the primary focus is on social and environmental performance rather than just financial profits. This type of corporation is designed to create a positive impact on society and the environment in addition to generating profit. It requires regular assessments of its social and environmental impact, holding the company accountable not just to shareholders but to a broader range of stakeholders including employees, suppliers, community, and the environment.

This dual focus on maximizing social and environmental benefits alongside financial returns is what distinguishes a Benefit Corporation from a traditional corporation, which mainly concentrates on profit margins. By prioritizing social responsibility, Benefit Corporations are committed to balancing profit with purpose, thereby fostering a sustainable business model. This reflects a growing trend where companies are increasingly evaluated on their contributions to society and the planet, not merely their financial achievements.