The global socio-ecological system is under stress with increasing consumer demands and society’s inability to meet those demands. Businesses are both enablers and inhibitors of this socio-ecological dilemma, enabling a shift towards sustainability, in various ways including through Certification. This study aims to understand the B Corp Certification (BCC) – a certification that certifies business according to their social and environmental performance.  The purpose of this study is to gage how much this Certification granted by B Lab moves the dial on sustainability.  To accomplish this, a case study was performed on B Lab with a focus on Developed Markets. This study was largely dependent on semi-structured interviews, desk research and an analysis of the B Impact Assessment (BIA) - a cornerstone of the BCC - which was assessed according to the Framework for Strategic Sustainable Development (FSSD). The FSSD which takes a scientific systems view on strategic sustainable development (SSD) was instrumental in analyzing how much the BCC aligns with a SSD approach. The result of this research lends itself to recommendations for the B Corp Certification of which B Lab may choose to consider in future iterations of the BIA and Certification in general.

In today’s society, environmental concern might be at a historical peak. 2778 companies in 60 countries have now acquired the Benefit-Corporation (B-Corp) Certification in attempts to demonstrate their environmental responsibility. The aim of the present study was to investigate the effects of implementing the B-Corp Certification in a USA automotive dealership on employee pro-environmental behavior and life satisfaction, with consideration of the moderating role of commitment to the B-Corp Certification. A within-group quasi-experimental design was used to investigate the effects of the certification over a 5-month period through self-reported measures. Thirty-three employees participated in this study. One-way repeated-measures ANOVA was conducted to measure differences in employee pro-environmental behavior before and after the implementation of the B-Corp Certification. Through bivariate correlations the relationship between employee pro-environmental behavior and life satisfaction was analyzed. Partial correlation was used to test the moderating role of commitment in determining the strength of the implementation on employee pro-environmental behavior. There was no difference between pre- and post-measurements of employee pro-environmental behavior. Commitment to the B-Corp Certification did not moderate the effectiveness of the implementation of the B-Corp Certification on employee pro-environmental behavior. Additionally, no relationship was found between pro-environmental behavior and life satisfaction. Finally, results are discussed within the context of industrial- and organizational(IO) psychology, as are the implications for future research and interventions aimed at increasingemployee pro-environmental behaviors.

This qualitative study contributes to the research field on legitimacy theory and creating shared value (CSV) in small and medium-sized enterprises (SMEs), regarding helping entrepreneurs and business owners better understand the journey of engaging with social and environmental issues. Recent years have seen a growing number of organisations engage in CSV, which builds on identifying societal needs and approaching these as business opportunities. A standard that purports to uphold these values and is comprised of for-profit companies committed to sustainability-related initiatives is the B Corp label. We consider B Corp certification and explore how sustainably oriented SMEs engage with their wider community in a way that fosters corporate credibility and legitimacy.  Empirical data about five SMEs organisational narratives working with CSV, implementation of social and environmental activities, and effects of B Corp certification were collected through in-depth semi-structured interviews with company representatives and a range of secondary data materials. Analysing the data from these five interviewed companies established them to be engaging with the notion of CSV and regard addressing societal or environmental issues as the purpose of their business. Furthermore, findings suggested that values and beliefs incorporated by the SMEs supersede the generally adopted values in society, thereby representing a paradox with legitimacy theory. As a result, these businesses aim to close the perceived legitimacy gap by trying to raise awareness and engage the public with the appropriateness of their business, thereby slowly providing citizens with a more conscious mindset.