Delivering societal impact through supply chain design: insights from B Corps

Abstract

PurposeThis paper examines how different configurations of societal impact are pursued by purpose-driven organizations (PDOs) and how these configurations align with the application of varying supply chain design (SCD) practices.Design/methodology/approachThis multi-method study uses quantitative data from 1588 B Corps and qualitative data from 316 B Corps to examine how PDOs align SCD with the pursuit of diverse types of societal impact. The authors first conduct a cluster analysis to group organizations based on the impact they create. Second, qualitative content analysis connects impact with enabling SCD elements.FindingsThe analysis of the five identified clusters provides detailed empirical insights on influencers, design decisions and building blocks adopted by PDOs to drive a range of societal impacts. Specifically, the nature of the impact pursued affects (1) whether a PDO will be more influenced by a need in the political environment or an opportunity in the industry environment, (2) the relative importance of the design of social flows versus material flows and (3) the need to develop new relational resources with beneficiaries versus leveraging existing capabilities to manage inter-firm processes.Originality/valueThis study responds to calls to disaggregate different dimensions of societal impact and examines the relationship between SCD and a breadth of sustainability impacts for different stakeholders. In doing so, the authors identify four SCD pathways organizations can follow to achieve specific societal impacts. This study is also the first to employ a supply chain perspective in the study of certified B Corps.

How do suppliers respond to institutional complexity? Examining voluntary public environmental disclosure in a global manufacturing supply network

“…Shin et al (2021) provided evidence of such an inflection point in their study of corporate orientation, which shifted from a shareholder focus to a stakeholder focus near the turn of the millennium. Other anecdotal evidence, such as the growing B Corp movement (Rosca & Taylor, 2023), suggests that firms are increasingly positioning sustainability outcomes at the center of their decision-making priorities. We therefore expect that a sustainability logic may play an increasingly important role in providing a moral, rather than instrumental (i.e., toward profitability or growth), basis for disclosure and other sustainable practices.…”