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BOISE, Idaho (AP) — An Idaho legislative panel is endorsing a plan to allow some corporations to make decisions based on social or moral causes instead of only maximizing profits.
The Senate Commerce and Human Resources Committee endorsed the bill —which creates a new business category— on Thursday.
Currently, Idaho law requires corporations must base decisions, such as hiring more personnel, on increasing profits or risk facing a lawsuit from stakeholders.
But under the bill, businesses in the new category — known as benefit corporations — would be exempt for making decision based on improving society.
Boise State University law professor Mark Buchanan told lawmakers the bill wouldn't affect the tax statuses of the companies.
More than 25 states have a similar category to allow corporations to pursue improving public life.
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