International law firm Dorsey & Whitney LLP congratulates clients American Prison Data Systems, Socratic Labs and Plexx for being among the first businesses to incorporate as Delaware public benefit corporations (PBCs), sometimes referred to as “B-corps”, on August 1, the first day such incorporation was possible under new Delaware legislation.

A B-corp is “a for-profit corporation . . . that is intended to produce a public benefit”. Directors manage the business “in a manner that balances the pecuniary interest of the stockholders, the best interests of those materially affected by the corporation’s conduct and the specific public benefit or public benefits identified in its certificate of incorporation.” Public benefits include artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, technological and others.

Delaware is the nineteenth U.S. state to authorize B-corps, but because of the state’s corporate cachet most observers see the Delaware adoption as a milestone in the B-corp movement. In total, 17 businesses filed in-person in Delaware on August 1 at an event attended by Delaware Governor Jack Markell, Secretary of State Jeff Bullock, CEOs, B Lab (the non-profit organization that has led the movement to promote B-corp legislation around the country), and other business leaders to celebrate effectiveness of the B-corp legislation.

“I’m very excited about the B-corp movement,” stated Dorsey Partner Jeff Fromm, who (along with Dorsey associate Joel Acevedo) attended the filing ceremony with Dorsey’s clients in Delaware. “It’s very gratifying to work with companies serving critical societal needs like American Prison Data Systems, Socratic Labs and Plexx. I look forward to working with other clients interested in harnessing the power of business for the public benefit.”