A new law passed by the state Assembly could, for the first time ever, make it legal in California for a corporation to put social responsibility before shareholder profits.

The Assembly on Monday overwhelmingly approved AB 361, a bill introduced by Marin Assemblyman Jared Huffman that would create a new class of corporation in California called "benefit corporations."

Benefit corporations' charter would be, according to Huffman's office, "to pursue a material positive impact on society and the environment, while meeting higher standards of accountability and transparency."

State law currently requires corporations to put financial interests first, and any corporation not doing so could face legal action from shareholders.

Corporations in a "benefit" category would be required to submit annual reports on how they're meeting certain social and environmental standards, as defined by a neutral third party.