Accountability and the public benefit corporation

Nancy B. Kurland

Business Horizons, 2017, vol. 60, issue 4, 519-528

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.

Keywords: Public benefit corporation; Third-party certification; Corporate accountability; Social enterprise; Corporate social responsibility (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:60:y:2017:i:4:p:519-528

DOI: 10.1016/j.bushor.2017.03.009

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