Making it Easier for Companies to be Socially Responsible: Corporate Certifications and Other Incentives

Abstract

In our global business environment, short term profit focus, stock price fluctuations, global competition and disruptive technological change tempt leadership toward disregarding corporate social responsibility and in many cases behaving unethically. There are at least four positive incentives underway that encourage achieving social good and more ethical governance. All four introduce a duality of purpose for achieving both business profit goals and social issue objectives: 1. becoming a Certified B company 2. Starting or changing to a Benefit corporation 3. Operating as a L3C organization and 4. Following the United Nation’s Global Compact. This article examines the foundations for each type of influence. These incentives are gaining traction as businesses focus more on corporate social responsibility.