Patagonia, 11 Other Firms Register As ‘Benefit Corporations’ in California

Outdoor clothing retailer Patagonia and 11 other companies registered Jan. 3 to become California’s first benefit corporations, a new class of companies required to create positive impacts for society as well as shareholders.

The new corporations were authorized under state legislation (A.B. 361) signed into law Oct. 9 by Gov. Jerry Brown and that went into effect Jan. 1 (169 DER A-23, 8/31/11).

Maryland was the first state to allow the so-called B Corps in April 2010. Since then, New York, New Jersey, Vermont, Virginia, and Hawaii also have passed B Corp laws, and legislation is pending in ...