public benefit corporation

A public benefit corporation (PBC) is a for-profit corporation created to operate in a responsible and sustainable manner while also pursuing one or more specified public benefits, in addition to generating profit for shareholders. Unlike traditional C corporations, which are primarily obligated to maximize shareholder value, PBCs are permitted, and required, to balance three considerations: 

  1. The pecuniary interests of shareholders, 
  2. The best interests of those materially affected by the corporation’s conduct (such as employees, customers, and communities), and 
  3. The public benefit or benefits identified in the corporation’s certificate of incorporation.

Many states, including Delaware, authorize the formation of PBCs and require periodic public benefit reports assessing the corporation’s progress towards its stated public purpose. PBC status may be adopted either at formation or through conversion from an existing corporation by amendment of the certificate of incorporation, typically requiring shareholder approval.

Well-known examples of companies that have adopted PBC status include Patagonia, Ben & Jerry’s, and Kickstarter.

[Last reviewed in December of 2025 by the Wex Definitions Team] 

Wex