How are certified benefit corporations characterized?

Pedro da Cunha e Castro Faria (Student)

Student thesis: Master's Thesis

Abstract

This thesis provides a comprehensive examination of Certified Benefit Corporations (BCs), entities that represent a significant evolution in the landscape of global business towards sustainability, social equity, and environmental stewardship. Through a detailed analysis of a database cataloguing all BCs up to November 2023, this study explores the legal frameworks, operational dynamics, and broader implications of BCs within the global business ecosystem. The research employs a quantitative approach to dissect the characteristics and trends of BCs, focusing on industry and sector analysis, geographical distribution, impact assessment scores, company size and growth, and certification trends. Certified Benefit Corporations are distinguished by their dual mission: to generate profit while contributing positively to society and the environment. This thesis delineates the distinctions between Benefit Corporations and Certified B Corps, highlighting the legal, certification, and accountability mechanisms that define these entities. The historical evolution of BCs is examined, tracing their origins, legislative frameworks, and global adoption, which underscores a paradigm shift towards integrating sustainability and corporate social responsibility into business operations. The impact of BCs on sustainable development is analyzed, demonstrating their contributions to environmental stewardship, social equity, and the Sustainable Development Goals (SDGs). The study also explores organizational and market dynamics, revealing how BCs navigate and influence the market while balancing profitability with their commitment to social and environmental objectives. Challenges and limitations inherent in the BC model are discussed, including legal constraints, certification processes, and the potential for green-washing. This thesis contributes to the ongoing discourse on sustainable business practices, offering a characterization of BCs in multiple dimensions. It therefore corresponds to a first step in understanding this new organizational model.