An Interview with Michael Shuman, Research Director of Cutting Edge Capital
Clearly, we support Benefit Corps, but it’s always helpful to get an objective view.
We interview Michael Shuman to get an economist’s take on why Benefit Corporations matter.
How will Benefit Corporations affect the market?
It increases market efficiency. It is an axiom of a market economy that it functions more efficiently when consumers have the best information possible. Benefit Corp designation helps match consumers and investors with companies that share the values of creating quality jobs that improve the quality of life in our communities.
How will Benefit Corporation legislation impact the economy?
The legislation boosts state economies. It will drive more residents to buy goods and services and more investors to place money in local companies. Local purchasing and local investing boost local jobs. There is a growing body of evidence that locally owned companies, compared to absentee owned businesses, generate more income, wealth, jobs, tax receipts, charitable contributions and lower carbon footprints.
What will Benefit Corporation Legislation cost?
There is virtually no cost. It would be difficult to identify another proposed measure that would deliver as much “economic stimulus” at as small a cost.