Non-economic Performance of Benefit Corporations: A Variance Decomposition Approach
Pankaj C. Patel () and
C. S. Richard Chan ()
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Pankaj C. Patel: Villanova School of Business, Villanova University
C. S. Richard Chan: Stony Brook University
Journal of Business Ethics, 2022, vol. 178, issue 2, No 4, 355-376
Abstract:
Abstract Drawing on evolutionary realism as a guiding framework and using relevant theoretical bases at macro- (country-), meso- (industry-), and micro- (firm-) levels, we investigate the relative variance explained by each level on selection (non-economic performance) and retention (decertification) of Benefit Corporations (B-Corps). Based on a sample of 5052 observations of certified B-Corps and 1403 observations of decertified B-Corps, relative to the country and industry differences, firm-level differences explain most of the variance in non-economic performance, especially for workers and community impact areas. Industry-level differences explain small differences in customers and environmental performance while country differences do not explain meaningful performance differences. The results also show a similar pattern in relative effects for decertified B-Corps. Our findings point to the value of disaggregating the relative effects of multilevel factors in further understanding drivers of non-economic performance and the decertification of B-Corps.
Keywords: Benefit corporations; Non-economic performance; Variance decomposition; Global sample (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)
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Persistent link: https://EconPapers.repec.org/RePEc:kap:jbuset:v:178:y:2022:i:2:d:10.1007_s10551-021-04754-y
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DOI: 10.1007/s10551-021-04754-y
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