DeSaulnier Bill to Encourage Formation of Socially Responsible Corporations

February 23, 2014 10:00 am · 22 comments

Senator Mark DeSaulnier (D-Concord) has introduced Senate Bill 1301, which he says will make it easier for companies to incorporate as socially responsible corporations in the state of California.

This bill strengthens previous efforts by Senator DeSaulnier to encourage companies to incorporate with a special purpose.

“Companies formed as Socially Responsible Corporations can promise that more than their shareholders will realize the benefits from the company’s success and subsequent investments,” Senator DeSaulnier said. “This bill promotes socially responsible business practices that will benefit our state. As the nation’s innovation leader, it is important that California provide options for socially conscious entrepreneurs.”

California took the lead in promoting the incorporation of companies with a socially responsible mission, when SB 201 (DeSaulnier) was signed in 2011. This bill established the new corporate form to allow California businesses to organize as a Flexible Purpose Corporation. This new corporate form, the “Flexible Purpose Corporation,” integrated the for-profit philosophy of the traditional corporation along with a “special purpose” mission. SB 201 encouraged and expressly permitted companies to pursue one or more charitable or public purpose activities in addition to creating economic value for shareholders. Several other states, including Delaware, followed California’s lead in creating flexible purpose corporate forms.

SB 1301 renames Flexible Purpose Corporations as Socially Responsible Corporations, to more accurately reflect the spirit of the law. Socially Responsible Corporations will now be required, and not just encouraged, to consider a special purpose.

SB 1301 will make it easier for companies from outside the state to incorporate or reincorporate as a “socially responsible corporation” in California. This bill also cleans up California code to conform to other states’ guidelines for the incorporation of flexible purpose or socially responsible companies.

anonymous February 23, 2014 at 10:20 AM

“Socially responsible corporation” as defined by the far left.

I predicted DeSaulnier would be putting forth all kinds of things with his name attached as he runs for Millers seat.

He didn’t disappoint.

GoodGrief February 23, 2014 at 10:21 AM

More DeSaulnier FAIL!!

Huh? February 23, 2014 at 10:23 AM

“More then their shareholders will realize benefits” Wow! thats a great concept .Ill put my money in a corporation and someone else will share in the profits.

What an idiotic idea.

California Nightmare February 23, 2014 at 10:34 AM

Still trying to figure out what a ” socially responsible” company is.

Would it ba a company directing money to kill unborn babies?

Would it be a company “investing” in lobbying government to protect a bait fish while farmers go bankrupt during a drought?

Only in the twisted logic of the Democrat party…

Noj February 23, 2014 at 10:59 AM

From the Manhattan Institute for Policy Research, Civic Report 09-2012:

“For decades after World War II, California was a destination for Americans in search of a better life. In many people’s minds, it was the state with more jobs, more space, more sunlight, and more opportunity. They voted with their feet, and California grew spectacularly (its population increased by 137 percent between 1960 and 2010). However, this golden age of migration into the state is over. For the past two decades, California has been sending more people to other American states than it receives from them. Since 1990, the state has lost nearly 3.4 million residents through this migration…
The data also reveal the motives that drive individuals and businesses to leave California. One of these, of course, is work. States with low unemployment rates, such as Texas, are drawing people from California, whose rate is above the national average. Taxation also appears to be a factor, especially as it contributes to the business climate and, in turn, jobs. Most of the destination states favored by Californians have lower taxes. States that have gained the most at California’s expense are rated as having better business climates. The data suggest that many cost drivers—taxes, regulations, the high price of housing and commercial real estate, costly electricity, union power, and high labor costs—are prompting businesses to locate outside California, thus helping to drive the exodus.”

From the Wall Street Journal, Joel Kotkin: The Great California Exodus 04-27-2012 :

“Meanwhile, taxes are harming the private economy. According to the Tax Foundation, California has the 48th-worst business tax climate. Its income tax is steeply progressive. Millionaires pay a top rate of 10.3%, the third-highest in the country. But middle-class workers—those who earn more than $48,000—pay a top rate of 9.3%, which is higher than what millionaires pay in 47 states.”

Mark pretends to care. But he doesn’t know why businesses, retirees, and other folks are leaving this once great state of California. He thinks more taxes, regulations, and big government are the answer.

Dredge February 23, 2014 at 11:47 AM

It’s an insult.

Dredge February 23, 2014 at 11:49 AM

“Special Purpose.” That’s from Steve Martin’s movie “The Jerk.”

Anon February 23, 2014 at 11:55 AM

Politicians looking to stay in office, or in his case take someone bigger’s seat.

Julio February 23, 2014 at 12:26 PM

“He thinks more taxes, regulations and big government are the answers” Of course he is a Democrat. Wish he could see how Obama care has destroyed those of us living with this mess. My co pays have more than tripled and I have normally reasonable Kaiser.

RANDOM TASK February 23, 2014 at 12:34 PM

@8 yep same and wait till next year when those go up and up and they change your 80% coverage to 60% since the Obama has made it so his healthcare conglomerates can fleece us all now he will in deed be getting kickbacks ( fundraising ) for years to come. As for all these bills coming out …….lol the lemmings will no doubt back the dems and their take over policies just as the germans did …..history to repeat itself ……over and over again………simple minds vote dem they have to that’s what they are told to do by their everything is free politicians. Who wouldn’t raise their hand if they were told everything is free follow me. Obviuosly and well unfortunately the lemmings will always bring us down.

mutts February 23, 2014 at 1:32 PM

Hahaha, Dredge. guess what folks, Hillary has a special purpose. We all know Bill’s special purpose!

Ven Xeter February 23, 2014 at 1:35 PM

Sadly, regardless of how much of a left wing loon this guy is, he is odds on to be our next congressman. While the audience of Claycord reads and actively tries to stay informed, most boobs in our district vote a straight democrat ticket regardless of who is running and what zany policy positions they espouse.

Dorothy February 23, 2014 at 1:36 PM

Socially responsible companies are those that don’t pay their major officers 1000% or more than their best paid lower employees. Socially responsible companies keep the jobs in this country instead of overseas for cheaper labor.
You don’t need laws by either party to create socially responsible companies.

Lorelei February 23, 2014 at 1:51 PM

How could anyone VOTE for this waste-of-carbon?!?!?!

Ted K., SuperMax February 23, 2014 at 1:53 PM

More “feel good” laws from the Peoples Republik of Khalifornia that do little, if anything, to create jobs.

Huh? February 23, 2014 at 2:38 PM

Ee gads! would someone, anyone, run against this moron?

@ Mirriam February 23, 2014 at 4:40 PM

I think you dont understand what a corporation is. Its a way people make money. If you invest in one as a sharreholder hopefully you get some money back. All the superflous stuff about being socially responsible comes down to this: Who is defining socially responsible? In DeSaulniers case its the far left doing it.

Previous poster was anti abortion, others are pro abortion. So who is right? Who is socially responsible? Do we have a vote on it?

This is simply more messing with the economy by a candidate for higher office. One who almost bankrupted the county when he was a Supervisor.

Boneguy1 February 23, 2014 at 4:50 PM

Bill should Read Encourage Socialist Corporations that pay off the elite Fascists like Markist Mark

RIII February 23, 2014 at 6:24 PM

Is this all these “Clowns” have to do? Our Cities, Counties, and our State is broke and they spend their time on this type of things. Very disappointing. It’s hard enough for any company to exist in this state without this kind of legislation.

Directive 10-289 February 23, 2014 at 6:32 PM

Sounds like some crony-capitalism scam.

Yhe Phantom February 23, 2014 at 9:30 PM

– State Senator Mark DeSaulnier for Congress 2014 – the Good Concord Solution as our leadership voice in Washington.
– For a list of his wide spread and diverse supporters:!

Yhe Phantom February 23, 2014 at 9:34 PM

All but one item completed

What have you defeatists done?


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SB 425 – Public Works Peer Review Act of 2013
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SB 717 – Warrants for DUI Blood Tests
SB 717 conforms California’s Penal Code to adhere to a US Supreme Court decision finding that in drunk-driving investigations it is now unlawful to conduct a blood test without consent. This bill requires officers to obtain a warrant before they can take a suspect’s blood, should the suspect not give consent.

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