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Accountability and the public benefit corporation

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  • Kurland, Nancy B.

Abstract

Can benefit corporations be held accountable for delivering requisite public goods? An oft-cited criticism is that they cannot, but little empirical research exists to support that claim. Based on an in-depth case study of the oldest corporation to amend its governing documents as a public benefit corporation (PBC) under Delaware law, this article suggests that a company can be held accountable for delivering requisite public goods when external mechanisms are accompanied by an organization’s internal commitment to self-awareness, learning, and measurement. In the case in question, the company established a three-pillar structure focused on professional engagement, community support, and charitable giving built on a 6-year-old sustainability initiative, accompanied by an adaptive learning culture, and driven by top-down and bottom-up efforts. Current challenges include measuring impact and branding the PBC to grow the company’s business.

Suggested Citation

  • Kurland, Nancy B., 2017. "Accountability and the public benefit corporation," Business Horizons, Elsevier, vol. 60(4), pages 519-528.
    • Handle: RePEc:eee:bushor:v:60:y:2017:i:4:p:519-528
    DOI: 10.1016/j.bushor.2017.03.009
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    References listed on IDEAS

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    1. Fischer Sven & Hamann Hanjo & Goerg Sebastian J., 2015. "Cui Bono, Benefit Corporation? An Experiment Inspired by Social Enterprise Legislation in Germany and the US," Review of Law & Economics, De Gruyter, vol. 11(1), pages 79-110, March.
    2. Hatanaka, Maki & Bain, Carmen & Busch, Lawrence, 2005. "Third-party certification in the global agrifood system," Food Policy, Elsevier, vol. 30(3), pages 354-369, June.
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    Cited by:

    1. Linlin Zheng & Yashi Dong & Jineng Chen & Yuyi Li & Wenzhuo Li & Miaolian Su, 2022. "Impact of Crisis on Sustainable Business Model Innovation—The Role of Technology Innovation," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    2. Kevin Levillain & Dana Brakman Reiser & Blanche Segrestin & Günter K. Stahl & Christian Voegtlin, 2019. "The Purpose-Driven Corporate Forms: Tackling Grand Societal Challenges with Innovations in Governance and Corporate Responsibility," Post-Print halshs-02296447, HAL.
    3. Moroz, Peter W. & Branzei, Oana & Parker, Simon C. & Gamble, Edward N., 2018. "Imprinting with purpose: Prosocial opportunities and B Corp certification," Journal of Business Venturing, Elsevier, vol. 33(2), pages 117-129.
    4. Mishra, Paresh & Schmidt, Gordon B., 2018. "How can leaders of multinational organizations be ethical by contributing to corporate social responsibility initiatives? Guidelines and pitfalls for leaders trying to do good," Business Horizons, Elsevier, vol. 61(6), pages 833-843.
    5. Kevin Levillain & Blanche Segrestin, 2019. "Commitment in the unknown: An innovative use of the Profit-with-Purpose corporate framework to ensure responsible innovation," Post-Print hal-02171252, HAL.
    6. Kevin Levillain & Armand Hatchuel & Jérémy Lévêque & Blanche Segrestin, 2022. "The emergence of multipolar corporate governance: the case of Danone and the French Société à Mission," Post-Print hal-03689828, HAL.
    7. Mara Del Baldo, 2019. "Acting as a benefit corporation and a B Corp to responsibly pursue private and public benefits. The case of Paradisi Srl (Italy)," International Journal of Corporate Social Responsibility, Springer, vol. 4(1), pages 1-18, December.
    8. Levillain, Kevin & Segrestin, Blanche, 2019. "From primacy to purpose commitment: How emerging profit-with-purpose corporations open new corporate governance avenues," European Management Journal, Elsevier, vol. 37(5), pages 637-647.
    9. Ronald Weber Kirst & Miriam Borchardt & Maurício Nunes Macedo de Carvalho & Giancarlo Medeiros Pereira, 2021. "Best of the world or better for the world? A systematic literature review on benefit corporations and certified B corporations contribution to sustainable development," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(6), pages 1822-1839, November.
    10. Kevin Levillain & Blanche Segrestin, 2019. "From primacy to purpose commitment: How emerging profit-with-purpose corporations open new corporate governance avenues," Post-Print hal-02290622, HAL.

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