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B Corp Certification and Its Impact on Organizations Over Time

Author

Listed:
  • Malu Villela

    (University of Bristol)

  • Sergio Bulgacov

    (FGV-EAESP and Universidade Positivo)

  • Glenn Morgan

    (University of Bristol)

Abstract

This study explores the impact of B Corp certification and its associated impact assessment on four case studies of small and medium-sized Brazilian companies certified as B Corps. The results reveal that although all companies had achieved high scores in the certification assessment, awarded on the basis of existing performance, they did not subsequently develop road maps for the future to improve their scores in the way which the B Corp Impact Assessment process endorses as one of the benefits of certification. Their incremental changes are discussed in the light of the main motivations and expectations of these companies’ founders with regard to the certification. A central role of the B Corp certification for this group of companies was to improve their external reputation with investors, clients and consumers. They were not strongly driven to reshape internal processes in ways which would advance their scores in the impact assessment and which would tackle complex problems of corporate governance. Our findings contribute to enriching the discussion of stakeholder engagement and corporate governance in hybrid organizations and contribute to the emerging agenda on studying change over time in B Corps.

Suggested Citation

  • Malu Villela & Sergio Bulgacov & Glenn Morgan, 2021. "B Corp Certification and Its Impact on Organizations Over Time," Journal of Business Ethics, Springer, vol. 170(2), pages 343-357, May.
    • Handle: RePEc:kap:jbuset:v:170:y:2021:i:2:d:10.1007_s10551-019-04372-9
    DOI: 10.1007/s10551-019-04372-9
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    4. Silvia Cantele & Chiara Leardini & Luca Piubello Orsini, 2023. "Impactful B Corps: A configurational approach of organizational factors leading to high sustainability performance," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(3), pages 1104-1120, May.
    5. Patrizia Gazzola & Stefano Amelio & Daniele Grechi & Chiara Alleruzzo, 2022. "Culture and sustainable development: The role of merger and acquisition in Italian B Corps," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1546-1559, September.
    6. Silvia Blasi & Silvia Rita Sedita, 2022. "Mapping the emergence of a new organisational form: An exploration of the intellectual structure of the B Corp research," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(1), pages 107-123, January.
    7. Valerie Paelman & Philippe Van Cauwenberge & Heidi Vander Bauwhede, 2021. "The Impact of B Corp Certification on Growth," Sustainability, MDPI, vol. 13(13), pages 1-16, June.
    8. 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.
    9. Ine Paeleman & Nadja Guenster & Tom Vanacker & Ana Cristina O. Siqueira, 2024. "The Consequences of Financial Leverage: Certified B Corporations’ Advantages Compared to Common Commercial Firms," Journal of Business Ethics, Springer, vol. 189(3), pages 507-523, January.
    10. Danilo Boffa & Antonio Prencipe & Armando Papa & Christian Corsi & Mario Sorrentino, 2023. "Boosting circular economy via the b-corporation roads. The effect of the entrepreneurial culture and exogenous factors on sustainability performance," International Entrepreneurship and Management Journal, Springer, vol. 19(2), pages 523-561, June.
    11. Vincenzo Riso & Mouhcine Tallaki & Enrico Bracci & Silvia Cantele, 2024. "The transition towards benefit corporations: What are the roles for stakeholders?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 904-916, February.
    12. Yeuseung Kim, 2021. "Certified corporate social responsibility? The current state of certified and decertified B Corps," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1760-1768, November.
    13. Iluminada Fuertes‐Fuertes & J. David Cabedo & José Miguel Tirado‐Beltrán, 2024. "How do hybrid organisations use socio‐environmental impact information? An exploratory analysis in European B corps," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 9181-9196, December.
    14. Chaoyuan She & Giovanna Michelon, 2023. "A governance approach to stakeholder engagement in sustainable enterprises—Evidence from B Corps," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5487-5505, December.
    15. Adriana Liute & Maria Rosa De Giacomo, 2022. "The environmental performance of UK‐based B Corp companies: An analysis based on the triple bottom line approach," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 810-827, March.

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