The two-way path between benefit and BC: Virtuous behavior or opportunism?

Following the example of selected US states, Italy was among the pioneers in regulating Benefit corporations (BECs), ushering in a new breed of companies committed to integrating positive stakeholder impact into their corporate missions. While obtaining BEC status is not obligatory for acquiring B-corp certification, Italian firms pursuing this certification must adhere to the BEC legal framework to uphold their certified status. This study delves into the BEC landscape, aiming to address the following research questions: i) Does possessing either pure BEC status or B-corp (BC) certification impact (financial) performance? ii) Does being a leader or a follower, characterized by different paths toward BC or BEC status, have an effect on performance? Our comprehensive analysis indicates that holding a B-corp certification positively correlates with economic and financial performance, while standalone BEC status lacks a significant impact on performance. Within the domain of hybrid organizations, certification emerges as a potent mechanism for enhancing performance. This trend can be attributed to the acknowledgment by external stakeholders—including consumers, investors, customers, and suppliers—that external certification, as opposed to mere legal structuring, adds tangible value to the enterprise.