By Ross Kerber

(Reuters) – A outstanding company reformer is pitching a stylish concept to Elon Musk as he takes management of Twitter Inc (NYSE:): flip the social-media platform right into a “public profit company” to work for the good thing about all stakeholders, not simply traders.

Adopting the authorized construction can be one in every of a number of methods to make sure that Twitter serves the general public curiosity, even when Musk finally sells the corporate once more or loses management, mentioned Rick Alexander, CEO of The Shareholder Commons.

“If you’d like an organization to be extra accountable, a PBC is an enabler,” mentioned Alexander in an interview. Different concepts his nonprofit advocacy group plans to stipulate in a letter to Musk and to prime Twitter traders on Wednesday embody setting guidelines to guard Twitter’s transparency and to create an impartial belief to implement these procedures.

As soon as Twitter is taken non-public, Alexander mentioned, “all of the strain that you just would possibly really feel from public shareholders to take care of a wholesome on-line discourse will go away.”

A consultant for Musk didn’t instantly reply to a request for remark.

After inking a deal to purchase Twitter for $44 billion final week, Musk mentioned he needed to reinforce the platform with new options, make its algorithms open supply to extend belief, defeat spam bots, and authenticate all people.

Musk has known as himself a “free speech absolutist” and criticized Twitter’s content material moderation insurance policies. Civil society teams have known as https://accountabletech.org/wp-content/uploads/Letter-to-Twitter-Advertisers.pdf on Twitter’s prime advertisers to uphold earlier steps Twitter has taken towards content material like harassment.

A former company lawyer, Alexander grew to become well-known as a pacesetter of B Lab, which certifies firms as assembly social and environmental requirements.

“Public Profit Companies” are a proper construction more and more utilized by firms once they incorporate to make clear how boards can prioritize the pursuits of stakeholders like staff and communities in addition to conventional fairness shareholders. Examples embody glasses maker Warby Parker Inc and Veeva Programs (NYSE:) Inc.

Some traders could also be contemplating rolling over their stake as Musk mentioned he wish to maintain as a lot of them as potential as he takes the corporate non-public.

“Making certain that Twitter is a optimistic social power lengthy into the long run is way more financially materials to shareholders than receiving a premium for his or her shares at the moment,” the Shareholder Commons letter mentioned.