FORMALIZATION IN LAW

For-benefits are a new class of organization. Like for-profits, for-benefits can generate a broad range of beneficial products and services that improve quality of life for consumers, create jobs, and contribute to the economy. Like non-profits, for-benefits can organize in pursuit of a wide range of social missions.

For-benefits represent a new paradigm in organizational design. At all levels, they aim to link two concepts which are held as a false dichotomy in other models: private interest and public benefit. For-benefits seek to maximize benefit to all stakeholders, and because of their architecture, they can embody some of the best attributes of other organizational forms. They strive to be transparent, accountable, effective, efficient, democratic, inclusive, open, and cooperative.

For the for-benefit organization to move from an idealized model to widespread cultural reality, support in the law will ultimately be required. Substantive changes are needed in corporate, non-profit, intellectual property, tax, securities, consumer protection and other laws at federal, state, and local levels. A range of promising efforts have emerged in recent years to create such regulatory changes.