Carol Liao, assistant professor of law at the University of British Columbia, calls the B.C. legislation 'a very American solution' to problems that don’t exist in Canada.British Columbia is poised to be the first Canadian province to follow a growing U.S. trend with legislation to support “benefit companies," which commit to do business in a responsible and sustainable manner.
Canadian corporate law has long required directors of companies to consider the interests of a variety of stakeholders , and not focus solely on the creation of shareholder value. A 2008 ruling from the Supreme Court of Canada in BCE v. 1976 Debentureholders is among the seminal cases on this requirement. Recent amendments to the federal Canada Business Corporations Act codified some of those principles.
In contrast, Canada’s current “oppression” remedy allows any stakeholder to launch a claim against a company for actions that infringe on the stakeholder’s legitimate expectations. Prof. Liao says the B.C. legislation curtails that remedy and would prevent companies from being held accountable for corporate social-responsibility policies.
But even the B Corp designation alone can be an attractive branding tool. For instance, the Business Development Bank of Canada said in February it had become the country’s first B Corp bank, pointing to the benefits of the B Lab certification on its website, including ways to “differentiate your company brand, attract millennial employees, [and] attract social media interest."
“I have a fundamental concern that people’s natural reaction is to take a paternalistic regulatory approach to this, when what we’re trying to do is enable for-profit companies to pursue profit and do it in a way that’s acceptable.”
GlobeBC While cruise ships flood BC waters along with all the ferries. Oh and exporting coal from Vancouver to countries that burn it.
GlobeBC So they are going to bribe them to comply with the governments wishes. MSM sold their integrity so why wouldn't other businesses do the same.
GlobeBC In other words, companies that do businesses the way the government wants them to, will be rewarded.