Social Enterprises and Benefit Corporations in Brazil: Projects for Corporate Qualification and Capital Market Regulation

Abstract

The new economy challenges companies to identify ways to generate positive social and environmental impact through their activities so that a corporation’s purpose lies in not only making a profit for the shareholders but also adding value to its stakeholders. The article addresses the economic legal concepts by looking at the impact of economic activity on the collective and sets out the legal principles, grounds, and limits of application to concrete cases. An overview of social enterprises in Brazil is presented, considering the particularities of the national context and the absence of a specific legal format. Through legislation, the proposal to create the qualification of benefit corporations is laid out as a useful and ready-to-use tool to foster entrepreneurial initiatives. Additionally, capital market self-regulation is explored, as a measure aligned with sustainable development.