scholarly journals Patterns of B Corps Certification: The Role of Institutional, Economic, and Political Resources

Societies ◽  
2020 ◽  
Vol 10 (3) ◽  
pp. 72
Author(s):  
Caddie Putnam Rankin ◽  
Todd Lee Matthews

This paper explores the certification of companies as B Corps from 2007 through 2016, the first 10 years of certification. B Corps are for profit companies that promise to “Be a Force for Good” in our society. Over 2600 companies in over 50 countries are certified as B Corps, responding to demands for higher accountability, ethical behavior, and contributions to their environment and community. We focus here only on B Corps in the United States and analyze a state-level database we have developed of 851 companies that became certified in the first 10 years of certification, between 2007 and 2016. In the paper we ask: What conditions in the macro environment facilitate the spread of B Corps certification? This paper uses the framework of resource dependence theory and institutional theory to explore the diffusion of certification. We hypothesize that institutional, economic, and political resources in the external environment provide conditions that support B Corps certification.

2016 ◽  
Vol 8 (1) ◽  
pp. 27-51 ◽  
Author(s):  
Qun Wang ◽  
Yanran Yao

As the civil society and corporatism theories have been frequently challenged recently, alternative theories emerged to investigate the government-ngo relationship in China. Some new theories are largely related to resource dependence or share core ideas with it. This paper conducts a comprehensive review of the resource dependence theory. It identifies four groups of variables (organizational characteristics, board of directors, attitude and value, and external environment), finds support for their relevance from both Western and China scholarship, and applies them to the Chinese context. The resource dependence theory has the potential of empirically examining the relationship without over-focusing on the state or society. It is capable of explaining the dynamic and diverse relationships between the government and various ngos in China.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Desmond Ng ◽  
Nima Khodakarami

PurposeThis study draws on resource dependence theory (RDT) to explain a board's governance function in the United States (US) nonprofit healthcare industry. Specifically, while various nonprofit research studies have appealed to agency theory (AT) to explain the monitoring role of an outside board, RDT offers an alternative explanation that emphasizes an outside board's resource gathering role.Design/methodology/approachIn drawing on the nonprofit GuideStar database, a fixed effect (FE) panel estimation was conducted on a sample of 230 US Non Profit Healthcare Organizations (NPHCOs). This panel estimation examines the relationship between the composition of an outside board and an NPHCO’s revenue and public support performance.FindingsA key finding of this study is that the composition of an outside board involving its' number, compensation and gender impacts an NPHCO’s revenue and public support.Research limitations/implicationsThis study shows that the composition of an outside board impacts an NPHCO’s ability to gain access to external resources. As NPHCOs face increasing pressure to seek external forms of revenue support, this study suggests that boards should favor a larger number, compensation and female representation of outside members.Practical implicationsThe composition of an outsider board can offer external sources of revenue support that lower the poor's requirements for financial assistance and thus affirm an NPHCO’s identity as a charitable organization.Originality/valueAs an NPHCO’s identity as a charitable organization is dependent on serving the medical needs of the poor, an outside board not only introduces a resource gathering function that is absent in the monitoring explanations of AT, but that this resource gathering function is important to affirming this identity.


2008 ◽  
Vol 3 (2) ◽  
pp. 115-140 ◽  
Author(s):  
FREDERIC H. DECKER

Abstract:Poorer resident care in US for-profit relative to not-for-profit nursing homes is usually blamed on the profit motive. But US nursing home performance may relate to Medicaid public financing in a manner qualifying the relationship between ownership and quality. We investigated effects of Medicaid resident census, Medicaid payment, and occupancy on performance. Resource dependence theory implies these predictors may affect discretion in resources invested in resident care across for-profit and not-for-profit facilities. Models on physical restraint use and registered nurse (RN) staffing were studied using generalized estimating equations with panel data derived from certification inspections of nursing homes. Restraint use increased and RN staffing levels decreased among for-profit and not-for-profit facilities when the Medicaid census increased and Medicaid payment decreased. Interaction effects supported a theory that performance relates to available discretion in resource allocation. Effects of occupancy appear contingent on the dependence on Medicaid. Poorer performance among US for-profit nursing homes may relate to for-profit homes having lower occupancy, higher Medicaid census, and operating in US states with lower Medicaid payments compared to not-for-profit homes. Understanding the complexity of factors affecting resources expended on resident care may further our understanding of the production of quality in nursing homes, whether in the US or elsewhere.


Author(s):  
Rebecca Waerder ◽  
Simon Thimmel ◽  
Benedikt Englert ◽  
Bernd Helmig

AbstractGrowing social, political, and economic uncertainties have shown that organizational resilience is becoming increasingly important for nonprofit organizations (NPOs). To ensure their long-term survival, NPOs need to respond to extreme events and adapt their services and processes. The theoretical premise of resource dependence theory assumes that interactions between an organization and its environment are crucial for the long-term adaptation to adversities. The present study investigates the contributions of nonprofit–private collaborations to organizational resilience of NPOs in light of the refugee crisis in Germany in 2015. Findings from a multiple holistic case study design indicate that collaborations of nonprofits with for-profit organizations support NPOs with stability, resources, expertise, and compassion to overcome resource-based, conceptual, and emotional challenges.


Author(s):  
Ali A. Alnodel

This paper aims to investigate how effective audit committees are in ensuring compliance with regulations in the Saudi context. Particularly, it examines whether there is an association between the value of fines imposed by the Saudi Capital Market Authority (CMA) and the size, frequency of meeting, and the financial expertise of the audit committee. Other variables have also been incorporated to control for possible effects, particularly size, leverage, ROA, age of the company, and year of fines. Data has been collected from the archives of CMA and from the annual reports of listed companies from 2014 to 2016. In total, 360 year-observations relating to 120 non-financial listed companies were analyzed among which 95 fines and actions imposed by CMA. The results suggest that the size and financial expertise of the audit committee and the leverage of the company and years of fines have significant association with the value of the fines imposed by CMA. In contrast, the regression analysis does not show significant association between the frequency of meeting of the audit committee and other controlled variables on the value of the fines imposed by CMA. These results suggest that the availability of resources to the audit committee, as suggested by the resource dependence theory, has a significant impact on its effectiveness. Regulators and companies could benefit from these findings to enhance compliance with regulations and to improve the role of audit committees. Moreover, these findings could be valuable to strengthen corporate governance practices in similar emerging markets.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mueen Ahmed ◽  
Sankalp Pratap

Purpose The purpose of this paper is to highlight the motivation for firms in emerging economies to engage in constraint absorption. It illustrates the mechanisms that enable business group (BG) affiliated firms to manage interdependencies vis-à-vis standalone firms in emerging economies. Design/methodology/approach The propositions outlined in this study are rooted in the theoretical lens of resource dependence theory (RDT). The authors integrate RDT with the resource-based view and institutional theory to explain the effect of BG affiliation on the relationship between the two types of interdependence (i.e. mutual dependence and power imbalance) and the likelihood of constraint absorption. Findings This paper theorizes that BG affiliation influences the relationship between mutual dependence/power imbalance and the likelihood of constraint absorption. However, if both the firms in a dyad are affiliated to a BG, the likelihood of constraint absorption is likely to be low owing to a process called “co-optation” even if mutual dependence or power imbalance between the firms is high. Originality/value This paper highlights how BG affiliated firms are better at managing contingencies in the external environment vis-à-vis standalone firms. This paper also advises managers that the type of organizational form is an important factor to be considered while engaging in constraint absorption in an emerging economy.


2016 ◽  
Vol 38 (8) ◽  
pp. 1039-1058 ◽  
Author(s):  
Ei Shu ◽  
Arie Y. Lewin

The central focus of this paper is a largely unexplored research domain relating to how low-power for-profit actors can shape their political and regulatory environment and create economic opportunities that affect their survival and growth. The paper builds on and extends the concept of “negotiating the environment” and on how organizations create their environment, with an emphasis on low-power actors. Resource dependence theory (RDT) has been very influential in exploring the many ways in which firms can decrease or overcome resource vulnerabilities in their environment with a focus on high-power actors (large companies, resource-rich companies, industrial associations, and political power of highly endowed companies). However, whether and how low-power actors can shape their political, regulatory, and economic environment was not central to RDT analysis, which is the focus of this paper. The empirical context for this research is the emergence and enactment of automobile emissions standards in Japan following the adoption in the United States of the Clean Air Act in December 1970. The focal firm is the Honda Motor Company, which, at that time, was a negligible competitor in the Japanese automobile industry and had no legitimate political or institutional standing. Yet the company was successful in undoing the cartel-like dominance of the two largest Japanese automobile manufacturers and the Japanese Environmental Protection Agency. The focus of this paper is describing the phenomenon and developing new theoretical insights relating to how low-power for-profit actors are able to negotiate their environment.


Management ◽  
2014 ◽  
Author(s):  
Adam Cobb ◽  
Tyler Wry

The resource dependence perspective (hereafter RD) refers to a research tradition that emerged from the basic framework of Jeffrey Pfeffer and Gerald R. Salancik’s classic 1978 work, The External Control of Organizations: A Resource Dependence Perspective (Pfeffer and Salancik 1978, cited under Classic Treatments). The theoretical arguments that serve as RD’s foundation can be summarized as follows: (1) an organization’s external environment comprises other organizations, each with their own interests and objectives; (2) organizations hold power over a focal firm—and may thus constrain its behavior—if they control resources that are vital to its ongoing operation and cannot be acquired elsewhere. RD also highlights a number of strategies that organizations can utilize to deal with problematic dependence relationships; empirical research in this tradition has largely focused on this catalog of strategies. This bibliography is organized by the topic areas covered in External Control and displays representative and impactful work associated with each topic. Though RD’s influence has spread to a number of disparate fields beyond management (Gerald F. Davis and J. Adam Cobb’s article “Resource Dependence Theory: Past and Future” (Davis and Cobb 2010, cited under Reviews and Theoretical Intersections), this article focuses on scholarly work published in management journals and related fields such as strategy and economic sociology which collectively comprise the core RD literature.


2016 ◽  
Vol 30 (5) ◽  
pp. 506-520 ◽  
Author(s):  
Millicent Kennelly ◽  
Kristine Toohey

This paper employs agency theory and resource dependence theory to explore relationships between Australian national sport governing bodies and commercial tour operators. These relationships produce domestic and international travel packages to major sport events and can provide commercial revenue to sport governing bodies. The research identifies agency challenges inherent in the relationships and how these are managed by sport governing bodies. Findings indicate that while sport governing bodies and tour operators interact to generate revenue, the two parties have divergent attitudes toward risk, particularly risks associated with pursuit of profit. The sport governing bodies manage interaction with tour operators through control of event tickets, a perishable and finite resource. The research contributes insights into the challenges confronting sport governing bodies attempting to diversify revenue into commercial sport tourism, as well as the underexplored role of sport bodies in facilitating major event tourism.


Shore & Beach ◽  
2020 ◽  
pp. 53-64
Author(s):  
Edward Atkin ◽  
Dan Reineman ◽  
Jesse Reiblich ◽  
David Revell

Surf breaks are finite, valuable, and vulnerable natural resources, that not only influence community and cultural identities, but are a source of revenue and provide a range of health benefits. Despite these values, surf breaks largely lack recognition as coastal resources and therefore the associated management measures required to maintain them. Some countries, especially those endowed with high-quality surf breaks and where the sport of surfing is accepted as mainstream, have recognized the value of surfing resources and have specific policies for their conservation. In Aotearoa New Zealand surf breaks are included within national environmental policy. Aotearoa New Zealand has recently produced Management Guidelines for Surfing Resources (MGSR), which were developed in conjunction with universities, regional authorities, not-for-profit entities, and government agencies. The MGSR provide recommendations for both consenting authorities and those wishing to undertake activities in the coastal marine area, as well as tools and techniques to aid in the management of surfing resources. While the MGSR are firmly aligned with Aotearoa New Zealand’s cultural and legal frameworks, much of their content is applicable to surf breaks worldwide. In the United States, there are several national-level and state-level statutes that are generally relevant to various aspects of surfing resources, but there is no law or policy that directly addresses them. This paper describes the MGSR, considers California’s existing governance frameworks, and examines the potential benefits of adapting and expanding the MGSR in this state.


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