Alisha, a student, wants to start a company creating “green” products for the ho

Question

Alisha, a student, wants to start a company creating “green” products for the home. She really wants to make money, but she is also very concerned about global warming and the environment. Should Alisha set up her company as:

o a nonprofit or charitable organization;

o a “benefit corporation” or “B corp.” that has a social mission but is also profit-driven (to learn more about these, go to www.bcorporation.net); or

o a traditional for-profit company (such as Ben & Jerry’s® or Newman’s Own®) that is required to donate X% of profits to environmental causes?

Explanation / Answer

o a “benefit corporation” or “B corp.” that has a social mission but is also profit-driven

I believe that Alisha should set up a Benefit corporation because that will be profit driven as she wants to make money and also the organization will contribute socially which will make the organization a socially responsible organization which will also help the organization achieve a competitive advantage over its competitors in the industry.

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