LETTERS

Encouraging responsible corporations

Posted 8/21/14

To the Editor:

An unusual situation has taken place with the Market Basket supermarket chain when non-union employees have walked off their jobs in an attempt to get their boss rehired. He has …

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LETTERS

Encouraging responsible corporations

Posted

To the Editor:

An unusual situation has taken place with the Market Basket supermarket chain when non-union employees have walked off their jobs in an attempt to get their boss rehired. He has been exceptionally kind to his workers in business dealings, yet because the majority owners want maximized profits and higher dividend payouts, they ousted the well-loved CEO.

Many would contend that in American capitalism a corporation should only be concerned about maximizing profits for shareholders and acting only on a company’s self-interests.

With the emergence of Benefit Corporations (B corporations) as a new corporate business model, it doesn’t have to be that way any longer. With B corporations their business decisions are made with significant consideration given to the welfare of the workers, community and environment. It is a business model that is focused on being socially responsible.

I was glad to see that recently Rhode Island enacted legislation to recognize the new business model for our state. I am hoping that some of our elected officials will push to create incentives for businesses within the state to reorganize themselves into B corporations. Perhaps giving them preference in the bidding process for state contracts would provide that incentive. I am sure that making a change to their tax status would be another action that would encourage it.

Rewarding companies for becoming more socially responsible should prove to be very beneficial to the business itself as well as to the citizens of this state. We should do everything we can to encourage industry to embrace this new economic model. This is a perfect opportunity for Rhode Island to stimulate a greater corporate concern for their workforce and good stewardship of our environment. I believe enacting legislation that promotes B corporations within this state is an issue worth pursuing.

Robert Midura

Warwick

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