Dec 31, 2019
A recent article by author Christine Dobby in The Globe and Mail discusses how a growing U.S. trend of benefit-company legislation is making its way into Canada, first through British Columbia. Benefit companies “commit to do business in a responsible and sustainable manner,” according to the article. The article explains how under the new law in B.C., “companies could opt to amend their articles of incorporation to reflect that commitment.” However, there has been debate as to the utility of benefit-company legislation in the Canadian context. Osler National Co-Chair Shahir Guindi explains this worldwide trend toward responsible investing.
“I think people have come to understand that philanthropy in and of itself isn’t enough to resolve the ills of the world,” Shahir tells The Globe and Mail. He says that non-profit organizations often struggle with long-term funding and governments have been leaning further to the right, slashing spending as they reduce debt and cut taxes.
“There isn’t extra money moving around in the public sector to give to social causes,” Shahir says, adding that a new class of investors and corporations are stepping into that void. “There’s a generation of people saying, ‘I want to earn a good living. But I also want to contribute and leave something for the generations that come after us.’”
If you subscribe to The Globe and Mail online, read author Christine Dobby’s article “B.C. joins growing trend to ‘benefit companies’ that do business in responsible, sustainable manner” on December 31, 2019, in The Globe and Mail.