May 19

Senate Bill 21 (SB 21), supported by Greater Cleveland Partnership (GCP) and introduced by Sen. Matt Dolan, allows a business to be classified in Ohio as a benefit corporation – a corporation whose purposes includes having a positive effect or to reducing one or more negative effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, or technological nature for the benefit of persons, entities, communities, or interests aside from shareholders. 

Benefit corporations often consider and balance the impact of their decisions not only on shareholders, but also on their stakeholders and their communities.  In addition, many benefit corporations offer annual benefit reports that assess their overall social and environmental impact.  According to provisions within SB 21, benefit corporations would not receive special government incentives to operate for a beneficial purpose and they are subject to all the other requirements imposed by Ohio law on for-profit corporations.

More than 30 states have passed legislation related to benefit corporations.

In GCP’s proponent testimony on SB 21, GCP welcomed the opportunity to serve as a resource to Ohio legislators as they continue considering the merits of the bill.

Read the full testimony