Defining a Conscious Economy: A Glossary of Sustainability Acronyms and Terms

[eridani]

http://www.csrwire.com/blog/posts/501-defining-a-conscious-economy-a-glossary-of-sustainability-acronyms-and-terms

We are experiencing a renaissance of sorts in business where leaders are recognizing the power of a market based approach to affect positive social and environmental change. Capital is being raised and deployed to facilitate change in the form of Impact Investment vehicles. Impact Investing alone is expected to become a $500 billion industry in the next ten years.

From top business schools and the boardrooms of corporate America to entrepreneurs in the developing world, momentum is building and so is the repertoire of buzzwords, acronyms and nuanced terminology. As a diverse set of stakeholders tries to define a way forward, it can be confusing to wade through the tongue-tangling terms that attempt to shape a new economy.

Here is our attempt to bring together major impact investing terms, define them, and point to origins when possible. This is by no means a definitive glossary on social impact, but it hopefully provides some clarification and helps you carry the conversation forward

Benefit Corporation

A company chartered as a Benefit Corporation is a class of corporation required by law to create general benefit for society, as well as for shareholders. The fiduciary responsibility of a Benefit Corporation includes creating value for employees, community and the environment in addition to generating a profit. Laws vary by state but generally allow owners to protect the social or environmental mission and all stakeholders of the company, taking into account factors other than highest purchase price at the time of sale.

A Benefit Corporation must publicly report on non-financial performances using established third-party standards. Ten states have enacted legislation to recognize Benefit Corporations