HI SB298

Establishes a new chapter in Hawaii Revised Statutes authorizing domestic corporations to elect sustainable business corporation status to operate in a socially and environmentally sustainable manner.

Requires sustainable business corporations to have a general public benefit purpose and allows articles to identify specific public benefits such as serving underserved communities, preserving the environment, improving human health, or promoting arts and sciences.

Mandates each sustainable business corporation designate an independent benefit director who prepares annual statements assessing whether the corporation pursued its public benefit purposes and whether directors and officers complied with required standards of conduct.

Requires annual benefit reports to shareholders including narrative descriptions of public benefits pursued, social and environmental performance assessments using third-party standards, compensation to directors, major shareholders, and a 60-day public comment period before final publication.

Allows shareholders and directors to bring direct or derivative claims to enforce the corporation's public benefit purposes and directors' standards of conduct, with enforcement coming from transparency and accountability provisions rather than government oversight.