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

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  • Caddie Putnam Rankin

    (Department of Business Management, Washington College, Chestertown, MD 21620, USA)

  • Todd Lee Matthews

    (Department of Business and Change Leadership, Cabrini University, Radnor, PA 19087, USA)

Abstract

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.

Suggested Citation

  • Caddie Putnam Rankin & Todd Lee Matthews, 2020. "Patterns of B Corps Certification: The Role of Institutional, Economic, and Political Resources," Societies, MDPI, vol. 10(3), pages 1-12, September.
    • Handle: RePEc:gam:jsoctx:v:10:y:2020:i:3:p:72-:d:416596
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    References listed on IDEAS

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    1. Ivan Montiel & Bryan Husted, 2009. "The Adoption of Voluntary Environmental Management Programs in Mexico: First Movers as Institutional Entrepreneurs," Journal of Business Ethics, Springer, vol. 88(2), pages 349-363, September.
    2. Taylor, Peter Leigh, 2005. "In the Market But Not of It: Fair Trade Coffee and Forest Stewardship Council Certification as Market-Based Social Change," World Development, Elsevier, vol. 33(1), pages 129-147, January.
    3. Di Giuli, Alberta & Kostovetsky, Leonard, 2014. "Are red or blue companies more likely to go green? Politics and corporate social responsibility," Journal of Financial Economics, Elsevier, vol. 111(1), pages 158-180.
    4. David Detomasi, 2008. "The Political Roots of Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 82(4), pages 807-819, November.
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    Cited by:

    1. Vítor Silva & Vanda Lima & José Carlos Sá & Luís Fonseca & Gilberto Santos, 2022. "B Impact Assessment as a Sustainable Tool: Analysis of the Certification Model," Sustainability, MDPI, vol. 14(9), pages 1-19, May.
    2. Elsa Diez-Busto & Lidia Sanchez-Ruiz & Ana Fernandez-Laviada, 2021. "The B Corp Movement: A Systematic Literature Review," Sustainability, MDPI, vol. 13(5), pages 1-17, February.
    3. Luis Fonseca & Vitor Silva & José Carlos Sá & Vanda Lima & Gilberto Santos & Rui Silva, 2022. "B Corp versus ISO 9001 and 14001 certifications: Aligned, or alternative paths, towards sustainable development?," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(3), pages 496-508, May.

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