A year after the Business Roundtable redefined a corporation’s role to focus on stakeholder well-being above short-term shareholder profits, law firms are starting to advise clients on environmental, social, and corporate governance. Stakeholders include employees, customers, vendors, and the community in addition to shareholders. Tod Northman, chair of the Tucker Ellis Conscious Capitalism working group, shared his insights in an article published by The American Lawyer on August 19.

“We’ve seen a lot of publicity over the last three years,” Tod said. “We’re starting to see this filter down into privately held companies.”

Tod commented on baby boomers who are transitioning out of business ownership and looking at employee stock ownership plans to keep employees in place, while younger entrepreneurs are starting benefit corporations that count societal impact as a legally defined goal.

“That existential threat that companies were facing helps them appreciate that having a longer-term perspective has a real value,” Tod said.

Read the article here.