Editor’s note: The New York Times is finally catching up with this story. See “A Scorecard for Companies with a Conscience” and “Ethical Businesses with a Better Bottom Line”.
BROADENING FIDUCIARY DUTY IN CALIFORNIA
One proposal unleashes capital for impact investing and the other creates more accountability for corporate social responsibility
By Ellie Winninghoff, Financial Advisor Green, April 5, 2011
What’s the difference between a nonprofit and a for-profit corporation? Actually, it’s becoming less clear. As the interest in impact investing [see The New Candy, March 2011] explodes and social entrepreneurs want to access different types of capital, more nonprofits are creating hybrid structures with for-profit subsidiaries. Corporations, on the other hand, are embracing sustainability as a way to reduce costs and risks, and to boost the value of their brand.