Oregon Becomes First State To Offer Sustainable Advantage to Benefit Corporations

Oregon House Representative Thuy Tran and BCFG co-founder Tom Hering smiling in April after a House committee voted to move HB 3572 to House floor for vote.

Oregon benefit companies will gain an advantage in competing for contracts from government agencies after Gov. Tina Kotek signed H.B. 3572 into law on Monday, July 31st.

 A contracting government agency will be allowed to select an Oregon benefit company over a contractor that is not a benefit company as long as the values of the bids are separated by less than 5%.

 “Benefit companies often sacrifice cost-efficiency to make sure they’re making decisions that will better our communities,” said Chief Sponsor Representative Thuy Tran. “This bill recognizes businesses that are serving the public good.”

 Oregon benefit companies are businesses that consider impact on society and the environment in addition to making a profit. To become a benefit company, a business must include a statement in its bylaws, adopt a third-party standard to measure its benefit to the public, and publish an annual benefit report.

 “Oregon is sending a strong message in support of sustainability by becoming the first state with this kind of law,” said Tom Hering, co-founder and managing partner of Benefit Corporations for Good, the only Oregon-based third-party standard certifier for the Oregon Benefit Company. “Businesses that consider environmental and social impact should be rewarded for the good they’re doing for their employees, their customers and their communities.” 

 The signing of the bill follows bipartisan votes in the Oregon House of Representatives and the Oregon Senate, respectively 32-11 and 19-5.

 The Oregon benefit company designation was created through legislation in 2013. There are now over 2,500 active Oregon benefit companies.

 ~benefitcorporationsforgood.com~