Impact Policy Tracker Policy

Italy’s Società Benefit



In 2016, Italy became the first country in the world to adopt the U.S. Benefit Corporation model, introducing the società benefit (SB) through the 2016 Stability Law. This legal framework, which came into effect on January 1, 2016, created a dual-purpose corporate structure that requires companies to pursue both profit and common benefit.



Highlights

  • First Benefit Corporation Model adapted by a Civil-Law System: Italy was the first country to transpose the US benefit corporation model into its civil-law system. While inspired by the US Model Benefit Corporation Legislation, a key innovation lies in Italy’s approach: rather than creating a new legal entity, the Italian law allows existing company types under the Italian Civil Code (ICC) to adopt società benefit status. This means that, unlike in the US -where only specific corporate forms can become benefit corporations- Italy’s model is available to all types of for-profit companies and cooperatives recognised under the Civil Code. In essence, it is a flexible legal status and governance model that can be applied across a wide range of business structures.

  • Precedent for Hybrid Business Structures: Italy's adoption of the società benefit model set a significant precedent, inspiring other civil law countries to follow suit. Between 2018 and 2020, countries like Colombia, Ecuador, and Peru introduced the Sociedades de Beneficio e Interés Colectivo (BICs), while France adopted the entreprise à mission model in 2019. Like Italy's model, these countries allow any for-profit organisational form, as defined by their respective legal frameworks, to adopt a hybrid status, integrating both profit-oriented and public benefit objectives.

Government’s Role:
Market Regulator


Country:
Italy

Policy Type:
Specific Legal Forms for Impact-driven Businesses

Year: 2016

Responsible Institution:
Italian Parliament

Additional information:
Social Enterprises and Benefit Corporations in Italy
B Lab Italy

Specific Legal Forms for Impact-driven Businesses

What are Specific Legal Forms for Impact Businesses?

Since the introduction of the Benefit Corporation (BC) model in the United States in 2010, several countries, including Italy (2016), France (2019), and Spain (2022), have established specific legal statuses -such as società benefit and entreprise à mission- that allow companies to pursue both profit and public benefit simultaneously, clearly demonstrating their commitment to creating positive societal impact. Benefit Corporations differ from traditional business models as they are legally required to pursue a public benefit, not just increasing profits for shareholders. This means that directors and executives must consider the interests of all stakeholders, such as employees, suppliers, customers, the community, and the environment. Furthermore, Benefit Corporations must report their performance using third-party standards to assess their social and environmental impact.

Among the advantages of adopting such statuses are legal protection for directors who prioritise long-term social and environmental goals over short-term profits, enhanced employee retention, and increased customer loyalty. BC status also provides clarity for impact investors and signals a company’s commitment to its social and environmental purpose. In some countries, such as Colombia, the legal status is tied to tax incentives, offering tangible financial benefits. However, the necessity of creating a specific legal form depends on each country’s existing regulatory framework. In some cases, such as South Korea, governments have opted for certification systems rather than new corporate structures. 

For more information on specific legal forms for impact businesses, visit The Rise of Benefit Corporations (2024) and The International Handbook of Social Enterprise Law (2022).