May 13, 2025 Project Liberty Newsletter:
Fifteen years ago, Public Benefit Corporations (PBCs) didn’t exist. Today, they have become a popular legal structure for some of the biggest tech companies in the world.
In the 200+ year history of U.S. corporate law, PBCs are a recent legal invention. The first state to pass PBC legislation was Maryland in 2010. Today, 41 states (and the District of Columbia) have laws that enable PBCs.
Unlike traditional corporate structures like C-Corps and S-Corps, which are designed to maximize shareholder value, PBCs promise an alignment between profit and a defined public benefit to society.
PBCs have been making news recently, with OpenAI’s recent decision to convert its for-profit business to a PBC controlled by a nonprofit parent entity.
Becoming a PBC has many benefits:
- Mission alignment: By legally embedding its social mission into its company’s DNA, a PBC structure can help tech firms stay focused on long-term societal impact.
- Public goodwill: A PBC structure can lead to enhanced consumer, employee, and investor trust in the brand. For AI companies responsible for the development of disruptive technologies, becoming a PBC is a step (though a small one) in assuaging the public that those in power have broader societal concerns in mind.
- Greater transparency: PBCs are required to adhere to regular and transparent reporting requirements. However, these requirements do not require AI companies to reveal how their AI algorithms work (a complaint that many have raised). It’s unclear if a shift in legal structure will lead to the type of transparency critics seek.
// Apply now: McCourt TPP Visiting Fellows Program
Deadline: June 6
The McCourt School’s Tech & Public Policy program is now accepting applications for its Fall 2025 Visiting Fellows cohort. This semester-long opportunity invites policy professionals to share their expertise with Georgetown students through lectures, discussions, and events in Washington, DC.
