Gemline, Lawrence, Massachusetts, has reincorporated as a Massachusetts Public Benefit Corporation – a change that requires the company’s board of directors to consider Gemline’s social and environmental mission along with its fiduciary responsibilities.
“Gemline’s commitment to social responsibility has been a consistent priority of our company and me,” said Jonathan Isaacson, executive chairman at Gemline and a member of Counselor’s Power 50 list of the most influential people in promo. “Formalizing this commitment as a Public Benefit Corporation aligns with the ethos that has guided both myself and the board for many years.”
The announcement comes a few weeks after the Lawrence, MA-based supplier released its fourth-annual corporate social responsibility report, and the company says it reinforces its commitment to lead by example in the promotional products industry.
Benefit Corporation is a legal status administered by a governing body – whether a state, province or country – that layers on top of traditional corporate status and states a company’s intention to focus on stakeholders, rather than shareholders. The commonwealth of Massachusetts explains in a memorandum regarding its Public Benefit Corporation designation: “While directors and officers of traditional for-profit corporations must focus primarily on maximizing financial returns to investors, the directors and officers of benefit corporations are expressly permitted to consider and prioritize the social and environmental impacts of their corporate decision-making.”
Frank Carpenito, president and CEO of Gemline and a Counselor Power 50 member, said the supplier is proud to join the growing community of Public Benefit Corporations. “By embracing this new legal structure, Gemline reaffirms its commitment to being a force for good and setting a higher standard for corporate responsibility,” he added.
Earlier this year, Master Italia SpA, parent company of Atlantis Headwear (asi/37380), transitioned into a Benefit Corporation in Italy. Reorganizing as a Benefit Corporation is often a first step for companies on a journey toward becoming a certified B Corp – a for-profit company that’s obtained certification from the nonprofit B Lab and has met high standards for verified performance, accountability and transparency on factors from employee benefits and charitable giving to supply chain practices and sustainability. B Corp certification has become increasingly popular in the promotional products industry and beyond.
Founded in 1958, Gemline ranked 12th on Counselor’s most recent list of the largest suppliers in the industry, with reported 2022 North American promotional products revenue of $151 million. The firm has a bronze rating from EcoVadis and noted in its most recent Betterway CSR report that it donated more than $973,000 to charitable causes in 2023, including national partnerships with the Boys & Girls Clubs of America and One Tree Planted.
