Reflections on the roles of governance and leadership in profit-for-purpose companies: A European–United States comparative perspective

Lisa M. Victoravich, Aimee L. Hamilton, Sung Soo Kim and N. Andrew Cohen

European Management Journal, 2023, vol. 41, issue 3, 337-344

Abstract: The profit-for-purpose movement has gained traction worldwide, with companies designating the second mission dedicated to a social purpose legislatively or by becoming a certified B Corp. This study reflects on the governance structure and associated accountability enacted by legislation in three countries where national legislation exists – the United States, Italy, and France. It also discusses accountability stemming from the B Corp certification. Given the limitations in accountability deriving from a governance structure or the B Lab certification, the paper reflects on the importance of leadership for the successful management of profit-for-purpose ventures and provides exemplars. We conclude by reflecting on the future of profit-for-purpose companies considering the recent environmental, social, and governance (ESG) movement and directions for future research examining key issues for dual-purpose companies.

Keywords: Benefit corporation; B Corp; Profit-for-purpose; Dual-purpose; B Lab; Governance; Leadership (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eurman:v:41:y:2023:i:3:p:337-344

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DOI: 10.1016/j.emj.2023.05.002

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