| The increasing interconnectedness of the world is bringing business and society together to address social and environmental problems. The need for such partnerships is indicated by the fact that in the U.S. alone over one trillion dollars annually is funneled toward solutions to social problems. This study seeks to understand the role stakeholders play in the social value creation of B Corp ventures. Moving away from Milton Friedman's perspective that the sole purpose of business is to make money, stakeholders in B Corp ventures embrace a broader purpose, toward which making money is necessary but not sufficient. In these new hybrid ventures, stakeholders work collaboratively to achieve both financial profits and social impact, through these new hybrid forms of business.;In this multiple case study, four ventures were identified that were both legally registered Benefit Corporations and certified B Corps, representatives of three primary stakeholder groups were interviewed: founders, employees, and customers. The results of the study suggest that founders decide independently, rather than collaboratively, to pursue B Corp certification. However, all primary stakeholders perceive certification as having positive influences on the ventures. These positive influences were found to be grouped in six themes, including alignment with company mission and purpose; opportunity to acquire new customers; attracting talent and increasing employee commitment; enhanced company performance and impact; a heightened sense of legitimacy and trust for the organization; and improved environmental impact. Future research opportunities include comparative studies of ventures that pursue B Corp certification and those that do not, and research designed to drill down into how primary stakeholders view the value creation of the venture. This research study advances stakeholder theory and support for the effect of stakeholders in social value creation in B Corp businesses. |
