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Corporation certification advantages: impacts on performance and development

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  • Richardson, Andrea
  • O'Higgins, Eleanor

Abstract

B Corporations are for-profit companies meeting specific social and environmental standards. This exploratory study into B Corporations aims to enhance the understanding of the certification on organizational performance. As previous research indicates that third party labels impact financial performance and that positive corporate social performance can lead to positive financial performance, this paper first seeks to determine whether B Corporation Certification positively impacts companies’ financial performance. Second, following previous B Corporation literature, this research tests whether certification leads to positive non-financial results in the form of strategic advantages. Finally, it asks whether Certification negatively impacts organizations’ plans to develop internationally and/or by going public. While this study’s results provide little support that B Corporation Certification impacts organizations’ financial performance or growth, they do indicate that B Corporations experience positive non-financial strategic results post certification. The results of this study may be used to infer or test conclusions about socially responsible labels more broadly in the future.

Suggested Citation

  • Richardson, Andrea & O'Higgins, Eleanor, 2018. "Corporation certification advantages: impacts on performance and development," LSE Research Online Documents on Economics 90889, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:90889
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    File URL: http://eprints.lse.ac.uk/90889/
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    References listed on IDEAS

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    1. Robert G. Eccles & Ioannis Ioannou & George Serafeim, 2014. "The Impact of Corporate Sustainability on Organizational Processes and Performance," Management Science, INFORMS, vol. 60(11), pages 2835-2857, November.
    2. Fabrice Etilé & Sabrina Teyssier, 2016. "Signaling Corporate Social Responsibility: Third-Party Certification versus Brands," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(3), pages 397-432, July.
    3. Fabrice Etilé & Sabrina Teyssier, 2016. "Signaling Corporate Social Responsibility: Third-Party Certification versus Brands," Scandinavian Journal of Economics, Wiley Blackwell, vol. 118(3), pages 397-432, July.
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    JEL classification:

    • J50 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - General

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