Question

ANSWER ACCORDING TO THE BOOK Chandler, D. (2017). Strategic Corporate Social Responsibility; CHAPTER 3

Q-1 What are the advantages and disadvantages of a firm incorporating as a benefit corporation? Is this new organizational form necessary? If you were starting a firm and you were in a state that allowed it, would you consider incorporating your firm as a benefit corporation?

NOTE: ANSWER HAS TO BE IN 300 WORDS, PLEASE DO NOT COPY AND PASTE, TRY TO WRITE IT IN YOUR OWN WORDS!

Answer 1

Benefits of a benefit corporation is that it can fully work towards the society and empowering people without any issues of profit maximisation. There are also grants given by government for these entities and there also tax waiver for same. Except benefit companies, no other organization is given the tax benefit. The benefit business thus share the mix of normal corporate as well as a sole proprietorship.
Disadvantages for it are that there is a lot of pressure from governments towards these organizations, and because of less revenue making, they are mostly in losses. The other loss is that a lot of times the cost can be much more than the revenues.
If I have to start, I will start a benefit corporation because to work towards this society this is the best that can be done. Also, it would lead to transparency and working towards a cause. Not only this, there will be tax benefit contribution which will help in reinvesting the money back in the business and to help more people.