New Hybrid Business Entities Combine Businesses, Social Missions


A social entrepreneur has a mission: to launch a successful business, but also to combine profitability with a broader societal purpose. Whether that purpose is environmental sustainability or fair trade, it may not always be compatibility with maximizing profits.

That's where boards of traditional business corporations face a dilemma.Sell the company to the highest bidder, or to one that will carry out the company's social mission? Corporate boards generally have a duty to maximize shareholder value in approving a sale or merger. That may mean an obligation to opt for money over mission, or face legal action.

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