Adopting benefit corporation legislation in India: a catalyst for achieving the SDGs
Shalini Kalra SahiPurpose
To address the needs of companies that want to do good and do well, many countries worldwide have introduced a distinct corporate legal structure to meet this requirement. In India, such a legal structure currently does not exist. The purpose of this study is to build the case for introducing a legal form similar to the structure called the “Benefit Corporation” for meeting the needs of companies that want to undertake triple bottom line objectives and want this reflected in their identity. This is imperative if the nation wants to move at a greater pace toward achieving the Sustainable Development Goal (SDG) targets.
Design/methodology/approach
This paper examines the existing legal frameworks in India for companies aiming to both succeed and contribute positively, as the benefit corporation (BC) legal form is not yet available. This study emphasises the gap that a BC structure could address.
Findings
Companies that wish to pursue a profit with a purpose objective face constraints within the existing structures available to them. None of the structures fully addresses the gaps that these companies face. The BC type legal structure can help to address these gaps.
Originality/value
The views highlighted in this paper emphasise the importance of BC-type legislation in India for companies seeking to balance profit with purpose. This legal structure could accelerate progress toward the SDG targets. This paper aims to encourage discussion on this topic among policymakers and other stakeholders. This study provides a constructive analysis of corporate legislation, specifically within the Indian context. This paper connects corporate legislation to SDGs, emphasising its role in promoting development and sustainable practices in the corporate sector.