Increasing Societal Impact in Social Enterprises: Lessons from a B Corp Multiple-Case Study

Abstract: After the financial crisis in 2008, many companies, as a response to stakeholders’ claims, decided to make profits and “do good”, increasing the chances of providing a positive societal impact. Social enterprises have always pursued this cause, however, very little of them succeed in changing the world due to their hybrid business model. The primary purpose of this study is to determine how social enterprises can improve their performance and stabilise their profit and purpose-based mission, by understanding how B Corps manage to provide a societal impact through their performance dimensions. The data for this research was obtained from a multiple-case study in which two German B Corps, previously social businesses, were studied in terms of performance. Semi-structured interviews were conducted, as well as organisational data and mass media documents gathered, that showed whether any changes or additional performance dimensions were implemented to their existing areas once the certification was obtained. Moreover, these two methods served as means that helped understand how social enterprises can implement new performance areas in order to further provide the societal impact they have always pursued. On one hand, the results did not support the initial expectations regarding the change in social businesses performance areas, but did, however, reveal certain benefits, characteristic of B Corps, that social enterprises can implement as their own, these being: the B Corp Community and the “B” Communication.