Eager to further prove the intention behind its new purpose statement, “We Promote Community,” Gemline (PPAI 113948, Platinum), has officially reincorporated as a public benefit corporation.
One requirement of becoming a public benefit corporation is that the Massachusetts-based supplier will need to provide a bi-yearly report on the progress of its stated social goals. Last month, Gemline released its 2023 CSR report. To read the report in its entirety, click here.
- Additionally, Gemline's board of directors is required to include considerations of those social and environmental goals into its fiduciary responsibilities.
“Gemline’s commitment to social responsibility has been a consistent priority of our company and me,” says Jonathan Isaacson, executive chair at Gemline. “Formalizing this commitment as a public benefit corporation aligns with the ethos that has guided both myself and the board for many years.”
What Is a Public Benefit Corporation?
By granting Gemline public benefit corporation status, the government is essentially recognizing the supplier as a business that is in the public interest. The designation intends to encourage for-profit organizations to be driven by more than just profit, and PBCs are legally required to pursue one or more environmental or social purposes.
Additionally, it is expected to operate within the best interests of stakeholders rather than just shareholders. Within this context, stakeholders include:
- Employees
- Customers
- Suppliers
- Communities in which the business operates.
Public benefit corporations are protected from liability if the business does not maximize shareholder value as long as it is in pursuit of the company’s social or environmental goals.
Gemline’s board of directors notes that the legal requirements of PBC status mirrors the company’s stance that profitability and positive social and environmental impact can be reached in tandem.
“We are proud to join the growing community of public benefit corporations that are driving positive change in the business world,” says Frank Carpenito, president and CEO of Gemline. “By embracing this new legal structure, Gemline reaffirms its commitment to being a force for good and setting a higher standard for corporate responsibility.”
Gemline’s Betterway program is a corporate social responsibility initiative that focuses on “People, Planet and Product.”
- In 2023, Gemline diverted 100% of waste from landfills.
- It also donated nearly $1 million to charitable causes.
Written by: Jonny Auping
Published with Permission from PPAI
