Which of the following statements about benefit corporations (B corporations) is most correct?

• A. They allow corporate boards and managers to sacrifice shareholder value for the greater good
• B. They maximize profits above all else
• C. They are illegal in most jurisdictions
• D. They cannot pursue social goals

Answer: (A)

Benefit corporations are legal entities that integrate a social mission into corporate governance, allowing boards to weigh social and environmental impacts alongside financial returns. Directors are empowered to consider stakeholders beyond just shareholders, such as employees, communities, and the environment, and this can lead to decisions that prioritize the broader good even if profits are not maximized in the short term. That’s why the statement that they allow boards and managers to sacrifice shareholder value for the greater good is the best fit: it captures the idea that pursuing social goals can influence decision making and may come at some cost to profits. The other statements don’t fit because B corporations are not strictly profit-driven above all else, they are not illegal in most jurisdictions, and they can pursue social goals in addition to financial ones.