Kickstarter Is Re-Starting

The widely known crowdfunding corporation Kickstarter is changing the way that it works. Instead of being a for-profit company, Kickstarter is now a Public Benefit Corporation. Straight from the source, "Until recently, the idea of a for-profit company pursuing social good at the expense of shareholder value had no clear protection under U.S. corporate law." Kickstarter used to be in this ambiguous situation, but now they are not. A PBC is a for-profit company that is legally obligated to keep in mind how their decisions affect society. In this case, Kickstarter can finally do what they set out to do from the start. They are, first and foremost, a company that works to serve artists and creators in the pursuit of their creative dreams.

Kickstarter has joined a small list of companies that are now considered Benefit Corporations, and they hope that this will be a growing trend. Maybe this is what we need, as a society. More companies with the purpose of helping society embedded in their legal being. Instead of putting profit above everything else, it’s important to keep the well-being of society in mind.

Let’s look at some of the goals that Kickstarter has defined in their new charter. This carter is broken up into 5 major categories which are more specifically described in sub-categories. These 5 major goals are as follows:

1.     Kickstarter’s mission is to help bring creative projects to life

2.     Kickstarter’s operations will reflect its values

3.     Kickstarter supports a more creative and equitable world

4.     Kickstarter is committed to  the arts

5.     Kickstarter is committed to fighting inequality

The first mission is very straightforward, but Kickstarter has taken it a step further than this simple statement. They want to try to go beyond this and take part in greater issues that affect the people that they will be giving their service to.

The second mission is more of a pledge than a mission. This reminds me of the Codes of Ethics of ACM or IEEE. This also states that Kickstarter will not sell any user data and defend the privacy of their users. It also states that they will have clear terms of use and that they will not lobby for public policies unless they align with Kickstarter’s values. They pledge not to use any legal loopholes. They also seek to limit environmental impact.

The third mission states that Kickstarter will donate 5% of its after-tax profits to organizations that support the arts.

The fourth mission is like a continuation of the third. It states that Kickstarter will support the arts, especially in less commercial areas. They will also support the creative adventures of their employees.

The fifth and final mission is a just one; stating that Kickstarter will allow employees to provide professional mentorship to underrepresented groups around the world. This is to combat inequality. They also pledge to report on information such as leadership demographics and executive par ratios

They promise to release a benefit statement every year to measure their results, and the first one will be released in February of 2017.