Accountability and the public benefit corporation

2017/04/29 by Nancy B. Kurland
Business, Management and Accounting · #Corporate Social Responsibility Reporting #Global trade, sustainability, and social impact #Environmental Sustainability in Business

paper · doi:10.1016/j.bushor.2017.03.009

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.

Citations

• Benefit corporations at a crossroads: As lawyers weigh in, companies weigh their options
• What Impact? A Framework for Measuring the Scale and Scope of Social Performance

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