Why Companies Are Becoming B Corporations

Understanding the new organizational form that looks beyond shareholders.

by

and

Todd Schifeling

by

and

Todd Schifeling

June 17, 2016

The landscape of American corporations is changing. Since the financialization of the economy in the late 1970s, corporate governance practices have tightly linked the purpose of business with maximizing shareholder value. However, as the 21^st century pushes on, there has been an increased emphasis on other stakeholder values, particularly social and environmental concerns. This trend in corporate governance – which has led to the growth in “triple-bottom line” thinking – has fueled the emergence of a new organizational form: the Certified B Corporation.

Suntae Kim is Assistant Professor of Management and Organization at Johns Hopkins Carey Business School. He studies how innovation emerges out of adversity, in the context of urban entrepreneurship, minority entrepreneurship, and crisis management. He received his doctoral degree in Business Administration from University of Michigan.
Matthew J. Karlesky is an assistant professor of management and entrepreneurship at Suffolk University’s Sawyer Business School. His research explores social cognition, creativity and innovation.
Christopher G. Myers is an assistant professor at Johns Hopkins University on the faculty of the Carey Business School, School of Medicine, and Armstrong Institute for Patient Safety & Quality. His research explores interpersonal processes of learning, development, and innovation in health care and other knowledge-intensive work environments. Follow him @ChrisGMyers.
Todd Schifeling is Assistant Professor of Management at Temple University Fox School of Business. He studies how organizations and social movements shape sustainability transitions. He received his doctoral degree in Sociology from University of Michigan.

Why Companies Are Becoming B Corporations

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