The transition towards benefit corporations: What are the roles for stakeholders?

A benefit corporation (BC) is the legal status of an enterprise that embraces a dual‐purpose business model (BM) of maximising shareholder value while satisfying stakeholders' interests. The literature so far has focussed on the motivations beyond the birth or transformation of BC, the factors that can favour the emergence of BCs, and the results companies achieve after the transformation, as well as studies on the new BCs' legislation. Other studies have examined how the duality of purpose (profit vs. social benefits) can be composed, and the risks of a mission drift favouring profit maximisation in BCs. By drawing on stakeholder theory, this study aims to highlight the role of stakeholders in the process of transformation from a traditional for‐profit BM to a BC model. We adopt a qualitative approach through a longitudinal case study to observe the transition of a small‐medium enterprise into a BC. The results show how management and engagement practices coexist in the relationships with stakeholders and how an instrumental approach prevails.