THE SENATE

S.B. NO.

1397

THIRTY-FIRST LEGISLATURE, 2021

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

RELATING TO CORPORATE SOCIAL RESPONSIBILITY.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 


SECTION 1. The legislature finds that the aloha spirit is expressed by the people of Hawaii in a variety of ways. For instance, Hawaii's keiki are raised with values that embody the aloha spirit by learning to care for family and are taught to appreciate the well-being of our island community at an early age. Additionally, many Hawaii corporations and their leaders share these values by engaging in business practices with care and concern, not only for Hawaii's economy, but also for the people of Hawaii.

The legislature further finds that the overall economic, social, environmental, and community well-being of the State is enhanced by corporations that are committed to socially responsible practices and these practices are worthy of the legislature's support and recognition.

Accordingly, the purpose of this Act is to:

(1) Establish a state policy that encourages Hawaii corporations to make a commitment to social responsibility, including sustainable business corporations, consumer cooperatives, employee stock ownership plans, and other socially responsible practices;

(2) Establish a social responsibility corporate awards program within the department of business, economic development, and tourism to recognize corporations for socially responsible practices; and

(3) Commission the legislative reference bureau to conduct a study on behalf of the legislature and to make recommendations concerning the status of socially responsible corporations in the State, including sustainable business corporations, consumer cooperatives, employee stock ownership plans, and other corporations practicing social responsibility.

SECTION 2. Chapter 13, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"13-   Corporations committed to social responsibility; state policy; awards program. (a) It shall be the policy of the State to encourage Hawaii domestic corporations to make a commitment to, and practice social responsibility in their commerce activities. Corporations that have made commitments to socially responsible practices include:

(1) Sustainable business corporations;

(2) Consumer cooperatives;

(3) Employee stock ownership plans; and

(4) Other corporations that have commitments to social responsibly in their corporate documents.

(b) There shall be established within the department of business, economic development, and tourism an awards program to recognize corporations that have performed sustainable and effective socially responsible practices in their business. The department of business, economic development, and tourism is authorized support the program with current resources, and may collaborate with non-governmental entities."

SECTION 3. The department of business, economic development, and tourism shall report to the legislature any awards presented through this program to the legislature no later than twenty days prior to the convening of the regular session of 2022.

SECTION 4. The legislative reference bureau shall conduct a study on socially responsible corporations in the State, including sustainable business corporations, consumer cooperatives, employee stock ownership plans, and other corporations that have added socially responsible practices in their corporate documents. The legislative reference bureau shall submit a report to the legislature no later than twenty days prior to the convening of the regular session of 2022. The report shall include:

(1) Findings and information on socially responsible corporations in Hawaii, those participating in the study, and their business practices; and

(2) Recommendations on ways to increase the number of socially responsible corporations in the State, including any proposed legislation.

SECTION 5. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.

 

INTRODUCED BY:

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Report Title:

Corporations; Corporate Practices; Social Responsibility; Sustainable Practices; Awards Program; Department of Business, Economic Development, and Tourism; Legislative Reference Bureau

 

Description:

Encourages Hawaii corporations to make a commitment to social responsibility. Establishes a social responsibility corporate awards program within the department of business, economic development, and tourism to recognize corporations that have performed sustainable corporate practices. Requires the legislative reference bureau to conduct a study regarding socially responsible corporations in the State.

 

 

 

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