What if corporations could balance profit with purpose?

In his 2021 Medium post, Peter Gassner, founder & CEO of Veeva, does just that by championing a crucial shift in corporate objectives and becoming the first public company to transition to a Public Benefit Corporations (PBCs) - where profit sits alongside purpose.

The Problem with Profit-Only

Gassner disagreed with economist Milton Friedman’s long-held view: a corporation’s sole duty is to maximize shareholder returns. In today’s tech-driven age, the short-sightedness of such thinking is clearly evident. Algorithms on platforms like Apple, Google, and Facebook shape our lives—covering what news we see, what we buy, and even access to services. If their bottom line is the only focus, society pays the price.

What Is a Public Benefit Corporation?

A PBC is a legally distinct for-profit entity that:

  • Embeds a public benefit purpose in its charter.
  • Requires directors to weigh stakeholder interests—not just shareholders, but also customers, employees, communities, and the environment.
  • Is legally accountable to pursue that broader purpose.

Unlike traditional corporations, PBCs are designed to balance profit with purpose.

Veeva’s Groundbreaking Move

When Veeva hit $1 billion in revenue, Gassner felt its impact demanded more than financial success. In February 2021, Veeva transitioned to a PBC with an astounding 99% of shareholder votes in favour of it. This bold move:

  • Cemented Veeva’s legal commitment to all stakeholders.
  • Provided long‑term clarity for future decisions under a defined corporate purpose.

Impact and Early Wins

In a 2023 follow-up, Gassner reports that the PBC structure has:

  • Strengthened employee and customer engagement.
  • Attracted values-aligned talent.
  • Enhanced Veeva’s ability to take principled, long-term decisions.

He highlights initiatives like reducing clinical-trial costs, creating better jobs, and eliminating non‑compete clauses—objectives captured in their annual PBC report.

Why It Matters Beyond Veeva

According to B Labs, PBCs are now recognized in the majority of states in the US, British Columbia Canada and a few other countries. On top of the public benefit, becoming a PBC offers:

  • Legal cover against shareholder lawsuits focused solely on profit.
  • Mandated annual reporting on social and environmental performance.
  • A branding advantage—showing customers and talent that values matter as much as earnings.

A Path Forward

Gassner challenges CEOs, boards, and even employees to:

  • Reflect on corporate purpose.
  • Consider converting to—or founding—PBCs.
  • Bring multi-stakeholder thinking into the boardroom.