Moise Butoyi Report: Analysis of Benefit Corporations and Social Media

This report, authored by Moise Butoyi, delves into the evolving landscape of corporate social responsibility. It examines the concept of benefit corporations, legal entities designed to pursue public benefits alongside shareholder profits, and contrasts them with traditional corporate structures. The report analyzes how social media platforms facilitate direct communication between organizations and stakeholders, improving information dissemination and enabling multi-dimensional interactions. It explores the legal frameworks and mechanisms, including third-party standards and independent directors, that support and enforce benefit corporation objectives. The report also references key literature, including works by Hiller, Blankespoor, André, Stecker, Lee, and Loewenstein, to provide a comprehensive understanding of the topic.

Running Head: MOISE BUTOYI 1
Moise Butoyi
Name:
Institution:

Moise Butoyi 2
Theme Full reference ‘Golden
threads’ and
evaluation of
data source
Frames Methods
1. Legal forms Hiller (2013) Improvement in
connection
between
corporate and
the society.
The legislature
allowed
independent
corporate
status.
Individual
petitions.
2. Disseminatio
n
Blankespoor,
Miller, & White
(2013)
Dissemination
of DAIT
enhances
symmetry of
information of
firms.
Application of
new
information
technology.
Analysis of use
of Twitter by
firms.
3. Social
responsibility
André (2012) Improved in
delivering of
social
responsibility
by the Gray
Sector
Organization.
Identification
of benefit
corporation and
application of
theory to
analyze its
design.
Examination of
statutes that
established
benefit
corporation in
the US.
4. Non-profit
organization
Stecker (2016) Adoption in
behavior of of-
profit
organization to
gain
sustainability.
Sale of
modified
enterprises,
creation of
revenue
streams.
Enactment of
legislatration.
5. Social media Lee, Hutton, &
Shu, (2015) Use of social
media led to
improved
capital market.
Use of social
media
platforms.
Sampling.
6. Model
Legislation
Loewenstein
(2016 Uniformity in
benefit
corporation
legislation
Adoption of
non-Model
Legislation.
Uncertain.

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Social media is a technology that basis on the web, enabling individuals to create, share,
and exchange data via networks and social communities. They are more accessible thus allow
any person to publish information.
Social media allows an organization reach a vast network of customers as well as
stakeholders with a message directly and quickly. Also, social media such as the use of Facebook
allows multi-dimensional interactions, giving users an opportunity to have a conversation online,
with the stakeholders and customers (Murray, (2014). It also enables an organization to bypass
intermediaries and spread its messages to a large number of users, without being filtered by
traditional media.
Social, environmental responsibility is a requirement of the benefit corporation that
provides legal protection to assist maximize shareholder profits as well as pursuing an ecological
need or agenda. It serves to improve, preserve, and to meet any other requirement for society and
the environment. The new Gray Sector Organization thus helps improve social responsibilities.
A Benefit Corporation is a legal entity whose obligations are pursuing public benefits, as
well as improving returns of the shareholders (Hansmann, (1981). It is a corporate type of
business inclusive of the traditional organizational features and societal responsibilities such as
preserving the environment, enhancing human health, availing communities with products and
services that are of benefit.
A B Corp is an entity that prioritizes with shareholder’s value maximization excluding
the value created for all stakeholders (Smith, & Zook, (2011). This is done by enhancing credible
investment, vailing ratings that are used by investors, and advocate an environment that can be
socially useful. Benefit Corporation, on the other hand, addresses shareholder’s wealth

Moise Butoyi 4
maximization, changing the obligations of officers to incorporate both social and environmental
conservation.
Social and environmental activities related to measures of conserving the environment,
enhancing public health, and delivering public benefits to the society.
A BC must deliver the benefits to the public (positive impact on the environment and the
society that is compared to a third-party standard ad) (Lee, Hutton, & Shu, (2015). The third
standard then chooses an authentic, self-standing, and a transparent part to prepare a report. The
directors then enforce a right to adopt the benefit purpose in the decision making. Transparency
is also vital, hence an independent director should be identified. Lastly, enforcement, the legal
action is put into place to bring public benefit.

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Reference
Hansmann, H. B. (1981). Reforming nonprofit corporation law. University of Pennsylvania Law
Review, 129(3), 497-623.
Lee, L. F., Hutton, A. P., & Shu, S. (2015). The role of social media in the capital market:
evidence from consumer product recalls. Journal of Accounting Research, 53(2), 367-
404.
Murray, J. (2014). Social Enterprise Innovation: Delaware's Public Benefit Corporation Law.
Smith, P. R., & Zook, Z. (2011). Marketing communications: integrating offline and online with
social media. Kogan Page.