scholarly journals Better Benefits for Better Business: Certified Benefit Corporations Connected Through Internal Communications

2021 ◽  
Vol 10 (2) ◽  
Author(s):  
Carly Adair ◽  
Holly Overton
Keyword(s):  
Decision Makers ◽  
Bottom Line ◽  
Social Good ◽  
For Profit ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Social And Environmental Performance ◽  
Corporate Social ◽  
Internal Communications ◽  
Qualitative Characteristics

Despite the broad body of research examining Corporate Social Responsibility (CSR) communications, there remains a lack of literature discussing the expansion of Certified Benefit Corporations (B Corps), which are businesses that meet a verified social and environmental performance to advance social good. Existing research analyzes the connection of internal communications and CSR. The following research reviews this relationship and suggests that more for profit companies qualify to be an effective B Corp due to shared qualitative characteristics of internal communications. The characteristics reviewed are corporate storytelling, triple bottom line values, and the importance of key decision makers. The literature review connects CSR and internal communications to form the foundation of 21 interview questions. The interview questions were used to identify qualitative characteristics of B Corps through an in-depth interview process. Top key decision makers in B Corps were selected to interview to gather qualitative information on their internal communications. The interview questions led to an open dialogue about the influence B Corps has had on each company. Each interview was transcribed accordingly and discussed in the research below. Three themes were discovered after reviewing the primary research. The overall consensus suggests that a sense of strong internal communications in a company can be represented in a Certified Benefit Corporation.

Social Enterprise Law

2017 ◽  
Author(s):  
Dana Brakman Reiser ◽  
Steven A. Dean
Keyword(s):  
Social Enterprise ◽  
Social Enterprises ◽  
Social Entrepreneurs ◽  
Bottom Line ◽  
Social Mission ◽  
For Profit ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Contingent Convertible Debt ◽  
Legislative Changes

Social Enterprise Law presents a series of audacious legal technologies designed to unleash the potential of social enterprise. Until now, the law has been viewed as an obstacle to social entrepreneurship, too inflexible to embrace for-profit businesses with a social mission at their core. Legislators have poured resources into creating hybrid corporate forms such as the benefit corporation to eliminate barriers to the creation of social enterprises. That first generation of social enterprise law has not done enough. The authors provide a framework for future legislation to do what benefit corporations have not: create durable commitments by social entrepreneurs and investors to balance financial gains and social mission by putting a speed limit on profits. They show how sophisticated investors need not wait for the advent of these legislative changes, outlining a contingent convertible debt instrument that relies instead on financial engineering to build trust between those with capital and those ready to use it to nurture a double bottom line. To allow social enterprises to harness the vast power of the crowd, they develop a tax regime that would provide crowdfunding platforms the means to screen the commitment of for-profit startups. Armed with these tools of social enterprise law 2.0 and the burgeoning metrics of measuring public benefit, entrepreneurs and investors can navigate even the turbulent waters of exit without sacrificing mission, so that a sale need not mean selling out.

Benefit Corporations Approach to Environmental, Social and Governance Disclosure: A Focus on Italy

2020 ◽  
Vol 10 (4) ◽  
Author(s):  
Mauro Sciarelli ◽  
Silvia Cosimato ◽  
Giovanni Landi
Keyword(s):  
Qualitative Method ◽  
Positive Impact ◽  
Corporate Structure ◽  
New Approach ◽  
For Profit ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Multiple Case ◽  
Governance Disclosure

AbstractOver the last decades, Benefit Corporations arouse as a new corporate structure, alternative to traditional ones and pointing to offer a new approach to the management of business and sustainability issues. These companies' activities are statutory aimed at bridging for-profit and no-profit activities; thus, they intentionally and statutory pursue economic purposes together with social and environmental ones, to create a positive impact on economy, society and environment. Even though, Italian and other national laws set some specific disclosure duties for Benefit Corporations, especially in terms of Environmental, Social and Governance (ESG) issues, the literature still calls for further research on the topic. Therefore, this paper is aimed at contributing to bridge this gap, investigating the way Italian Benefit Corporations approach ESG disclosure. To this end, an exploratory analysis has been conducted, implementing a qualitative method, based on a multiple case study strategy. Even though the descriptive nature of the study, the achieved findings pointed out that the Benefit Corporation structure not necessarily implies a better approach to ESG.

Are Changes in Corporate Governance an Answer?

2021 ◽  
pp. 189-213
Author(s):  
Matt Fischer-Daly
Keyword(s):  
Corporate Governance ◽  
Positive Impact ◽  
The United States ◽  
Detailed Examination ◽  
Due Diligence ◽  
Private Regulation ◽  
For Profit ◽  
Benefit Corporation ◽  
Corporate Entity ◽  
Benefit Corporations

This chapter explores the potential for changes in corporate governance to overcome the decoupling problem in private regulation, through a detailed examination of the case of benefit corporations. In the United States, a benefit corporation is a type of for-profit corporate entity that includes among its goals — in addition to profits — a positive impact on society, workers, the community, and the environment. The chapter argues that the B-Corp movement is a false promise because of the legal limitations of actors to seek remedy if a benefit corporation does not meet its “benefit goals” and because of a variety of issues in the certification process for such a corporation. This argument is supported through the analysis of the private regulation program of a leading benefit corporation, which shows that its status has in no way improved coupling between private regulation practices and outcomes. It would seem that the benefit corporation certification is simply another modern ritual of due diligence, although there is a need for additional research on benefit corporations to confirm this conclusion.

Organizational Identity Formation in Alternative Organizations: A Study of Three Benefit Corporations

2019 ◽  
Vol 33 (4) ◽  
pp. 484-511 ◽  
Author(s):  
Irina M. Kopaneva ◽  
George Cheney
Keyword(s):  
Identity Formation ◽  
Organizational Identity ◽  
Profit Maximization ◽  
The United States ◽  
Bottom Line ◽  
Social Mission ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Multiple Case ◽  
New Type

The benefit corporation (BC) in the United States is a new type of corporation legally required to generate profit for its shareholders and to pursue public benefit. BCs explicitly work to balance profit maximization and social mission, which is an ongoing challenge for businesses with an expansive view of the bottom line. This multiple case study extends scholarship on identity formation (IF) in nontraditional organizations, such as BCs, by providing empirical evidence of how identities develop in relation to prevailing cultural sentiments. In particular, we demonstrate how BC struggles over organizational identity (OI) reference broader socioeconomic discourses, identify mechanisms through which perceived pressures suppress alternative interpretations of OI at a micro-level of member interaction, and expose tensions between dominant and alternative frames for business enterprise.

Does Benefit Corporation Status Matter to Investors? An Exploratory Study of Investor Perceptions and Decisions

2020 ◽  
pp. 000765031989846 ◽  
Author(s):  
Lauren A. Cooper ◽  
Jill Weber
Keyword(s):  
Investment Decisions ◽  
Publicly Traded ◽  
Social Good ◽  
Publicly Traded Companies ◽  
Mba Students ◽  
Benefit Corporation ◽  
Financial Gain ◽  
New Type ◽  
Csr Disclosure ◽  
Corporate Social

We investigate whether the disclosure of a firm’s decision to organize as a benefit corporation (BC) rather than a traditional C corporation (CC) influences investors. We survey 136 investors and 57 MBA students and find that they expect BCs to attain higher future corporate social responsibility (CSR) than CCs even when both have equal CSR ratings. Approximately one third of our sample prefers to invest in BCs when CCs have greater financial returns, indicating a willingness by some investors to sacrifice personal financial gain for social good. Our results suggest that investors weight the information contained in BC disclosures as reliable and value-relevant in their investment decisions. We extend the CSR disclosure literature by indicating how investors weight this new type of CSR information, which may affect how BCs fare as publicly traded companies.

Benefit Corporations

2019 ◽  
Vol 38 (2) ◽  
pp. 223-247
Author(s):  
Kathleen Wilburn ◽  
Ralph Wilburn ◽  
Keyword(s):  
District Of Columbia ◽  
Fortune 500 ◽  
Third Party ◽  
Social Purpose ◽  
Benefit Corporation ◽  
Fortune 500 Companies ◽  
Benefit Corporations ◽  
Corporate Social ◽  
Assessment Format ◽  
Third Party Assessment

More than half of the S&P 500 and the Fortune 500 companies publish corporate social responsibility (CSR) reports. CSR is at the heart of a new form of corporation, the benefit corporation, which requires the pursuit of a social purpose as well as pursuit of profit. Thirty-four states, plus the District of Columbia, have enacted benefit corporation legislation. Most laws require that benefit corporations publish reports on their social purpose performance using a third-party assessment format. The purpose of this paper is to analyze 1,530 benefit corporations identified by B Lab and the state of Minnesota for proof of social purpose performance, as demonstrated in reports on their websites. The study found some companies with excellent reports, but those had had a CSR focus prior to becoming benefit corporations or had been Certified B Corporations. However, most benefit corporations in the study had no published reports; many have no websites.

A critical reflection on sustainability within the UK industrial sectors

2012 ◽  
Vol 12 (3) ◽  
pp. 317-334 ◽  
Author(s):  
Suresh Renukappa ◽  
Charles Egbu ◽  
Akintola Akintoye ◽  
Jack Goulding
Keyword(s):  
First Century ◽  
Structured Interviews ◽  
Bottom Line ◽  
Content Type ◽  
For Profit ◽  
Industrial Sectors ◽  
Not For Profit ◽  
The Uk ◽  
Corporate Social ◽  
Industry Sectors

PurposeIn the early part of the twenty‐first century, the term sustainability has become a buzzword. Although featuring strongly in the popular media, trade, professional and academic journals, the very concept of sustainability is elusive for businesses. There is, however, a little empirical research on the perceptions of the UK industrial sectors on the concept of sustainability – which is the core raison d'être of this paper. The purpose of this paper is to capture the general perceptions of the UK industrial sectors on the concept of sustainability.Design/methodology/approachThe aim of this paper is to capture the general perceptions of the UK industrial sectors on the concept of sustainability using a qualitative approach. Four industry sectors: energy and utility, transportation, construction and not‐for‐profit organisations (NPOs) were considered based on the environmental, social and economic impact on the UK society. Semi‐structured interviews were used to collect industry perception which was then analysed using content analysis for inference and conclusion.FindingsThe data analysis revealed that the perceptions of the UK industrial sectors on the concept of sustainability vary significantly across the four industry sectors. Four core categories were identified: environmental, economic, corporate social responsibility and triple bottom line dimension.Practical implicationsThe paper concludes that the concept of sustainability is multifaceted and diverse. Although the importance of sustainability is broadly acknowledged across the four industry sectors, there is a significant lack of a common and operationalised understanding on the concept of sustainability. Therefore, it is recommended that there is an urgent need to develop and deploy an industry‐wide awareness‐raising programme on the concept of sustainability.Originality/valueThe paper provides a richer insight into the understanding and awareness of the meaning of sustainability at a conceptual level.

Corporate Social Responsibility

2020 ◽  
Author(s):  
Abagail McWilliams
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Research Literature ◽  
Social Enterprises ◽  
Market Failures ◽  
Corporate Environmental Responsibility ◽  
Socially Responsible ◽  
Bottom Line ◽  
Social Good ◽  
Corporate Social

Corporate social responsibility (CSR) is a legitimate responsibility to society, based on the principle that corporations should share some of the benefit that accrues from the control of vast resources. CSR goes beyond the legal, ethical, and financial obligations that create profits. In the research literature, corporate social responsibility is defined in a variety of ways, depending on the aspect of CSR being examined. An inclusive definition is that social responsibility requires the firm to take into account the interests of all stakeholders, where stakeholders are defined as everyone who affects or is affected by the firm’s decisions and actions. A firm-focused definition holds that social responsibility includes actions that further a social goal, beyond what is required by ethics, law, and profitability. A political economy–oriented definition posits that firms have a responsibility to correct market failures such as negative externalities and government failures such as limits to jurisdiction that result in worker rights violations. When implemented, altruistic CSR implies that firms provide a social good unrelated to the firms’ business that does not benefit the bottom line. Strategic CSR implies that firms are simultaneously profitable and socially responsible. To achieve this, CSR must be a core value of the firm and must be integrated into processes and products. When employed strategically, CSR can be an element of a differentiation strategy, leading to premium prices, enhanced brand and firm reputation, and supportive community relations. Corporate environmental responsibility often takes the form of overcompliance with regulation, improving the environment more than is required. A primary benefit of this is to stave off further regulation. To capture the benefits of being socially responsible, the firm must make stakeholders aware of its record. This has led to triple bottom line reporting—that is, reporting about firm performance in terms of profits, people, and the planet. Social enterprises go a step further and make social responsibility the primary goal of the organization.

scholarly journals Taking Stock of the Benefit Corporation

2019 ◽  
Vol 7 (1) ◽  
pp. 73-124
Author(s):  
Ronald J. Colombo
Keyword(s):  
Final Section ◽  
Corporate Law ◽  
American Business ◽  
Minimal Impact ◽  
New Era ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
History Of ◽  
Standards Of Conduct ◽  
Corporate Social

Almost a decade ago, the “benefit corporation” first appeared on American soil. Its supporters proclaimed that this would usher in a new era of corporate social responsibility. Its detractors complained that the benefit corporation would facilitate managerial abuses that corporate law had worked so hard to curb. After nearly ten years of experience with the benefit corporation, who was the more accurate prognosticator? Moreover, has the benefit corporation given rise to developments, whether beneficial or negative, that were not expected or foreseen? This Article traces the history of the benefit corporation, with a focus on the promise that its early supporters identified with it. It also examines the criticisms that this new form of business organization provoked. The Article concludes that, contrary to the predictions of both camps, the benefit corporation has not, apparently, resulted in much change at all. In its final Section, the Article explores the reasons why the benefit corporation has had, thus far at least, such minimal impact on the course of American business and corporate law. The conclusion reached is that, for good or for ill, benefit corporation statutes do not materially change the rules of corporate governance. Rather, they simply explicitly permit benefit corporations to conduct themselves according to standards of conduct that traditional corporate law statutes already implicitly permit. Although the promoters of benefit corporation legislation have argued that even this minor change would have an impact on businesses by effecting a normative shift in corporate decision-making, contemporary market forces appear to have had the same result on a far broader scale. Lastly, this Article considers some of the unexpected repercussions of the benefit corporation, whether manifested or growing in potential.

The Mondora Method: Quantum Leaders in Benefit Corporations

2020 ◽  
Vol 10 (4) ◽  
Author(s):  
Giorgia Nigri ◽  
Mara Del Baldo ◽  
Armando Agulini
Keyword(s):  
Single Case ◽  
Governance Structure ◽  
Social Enterprises ◽  
Social Entrepreneur ◽  
Future Research ◽  
Bottom Line ◽  
Full Spectrum ◽  
Benefit Corporation ◽  
Benefit Corporations ◽  
Depth Study

AbstractSustainable development is now seen as the business paradigm for the 21st century and poses a significant dilemma for managers, which is to balance economic goals, environmental impact and social development. In recent years, more and more attention has been paid to sustainable entrepreneurship as a concept combining triple bottom line (TBL) aspects since introducing social and ecological values and goals, in addition to economic ones, is seen as a long-term strategy for survival and value creation. Italy’s socio-economic context where there are a large number of small and medium-sized enterprises (SMEs) and social enterprises has proven to be a good field for new hybrid forms of for-purpose business. This paper is a single case in-depth study conducted over three years (2017–2019) analyzing Mondora, a certified and legally recognized Benefit Corporation that has introduced full-spectrum teal practices in its governance structure and is shifting the paradigm as a flourishing enterprise. The aim of this paper is to analyze the legal and governance framework of Mondora as a benefit corporation and delineate a best-case example that embraces new leadership practices as a pilot for future research on benefit corporations. The implications lie in the fact that the typology of the social entrepreneur present in benefit corporations has the characteristics of the quantum leader outlined by Tsao and Laszlo (2019).

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