Proposal would support corporate leaders who pick environment over profit

March 28, 2010

Maryland could be the first state in the nation to allow a new class of "for-benefit" corporations if a measure before the House of Delegates receives final approval. The designation, which has already been approved in the Senate, would allow the director of a company to weigh community, environmental and societal factors when making determining the "best interest" of the company. "It is evolving as a national movement," said Del. Brian J. Feldman, a Montgomery County Democrat, during a Saturday debate on the measure. The designation could shield some corporate leaders from stockholder lawsuits if the company takes an action that, for example, puts an environmental concern over profits.

- Annie Linskey

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