Rasmussen College Announces Public Benefit Corporation Status

Press Releases, Campous Technology, Jan 22, 2014
Commentary by Stephen Downes

This item was flagged in a securities alert from Wells Fargo's Trace A. Urdan (I don't play the stock market but the reports are interesting). He writes, "as a public benefit corporation its corporate responsibility will extend beyond financial shareholders to include a broader range of stakeholders, and its corporate mission will place making a positive impact on society above delivering financial returns to shareholders." Why does this matter? Urdan writes, "Fealty to financial stakeholders and the fiduciary responsibility to maximize financial returns has been a common criticism levied against forprofit schools by their detractors." By making its educational mission just as important as its shareholder interests under the law the college can argue that its for-profit status will not infringe on its educational mission. I'm not completely convinced, but I view this as a healthy move in the right direction.

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