In today’s corporate landscape, organizations are increasingly prioritizing their commitment to social causes such as sustainability and diversity, equity, and inclusion (DEI). This heightened focus on societal impact has led to the rise of certifications like B Corp status, which recognizes companies for their outstanding prosocial practices. While achieving B Corp certification is a significant accomplishment, some organizations choose to go above and beyond by further escalating their commitments to social responsibility. A recent study by Sharma et al. (2025) delves into the motivations behind this additional escalation and its impact on organizational sustainability.
The researchers analyzed data from companies that had obtained B Corp certification and participated in the Inclusive Economy Challenge (IEC) introduced by B Lab in 2016. The IEC offered B Corps the opportunity to pledge to enhance their DEI-related practices over the following year. This initiative provided valuable insights into the factors influencing organizations’ decisions to increase their prosocial engagements and the outcomes of such actions.
The study revealed that companies with a strong identity centered around DEI values and those that prominently featured DEI-related language in their online communications were more likely to participate in the IEC. Additionally, organizations with a focus on employee well-being and community engagement showed a higher propensity to join the challenge. Participants in the IEC demonstrated greater improvements in their DEI practices compared to non-participants and saw positive advancements in their overall sustainability efforts. However, a notable finding was that B Corps with lower initial DEI scores were more inclined to disengage from the B Corp community post-IEC, indicating a potential polarization effect within the group.
For organizations considering participation in initiatives like the IEC, the study suggests aligning such commitments with their core values and public image to enhance both DEI practices and broader sustainability outcomes. However, companies lacking a strong DEI orientation may face challenges in meeting the demands of escalating prosocial commitments. To address this, the researchers recommend creating support mechanisms such as peer groups for sharing resources and maintaining accountability. Furthermore, certification bodies can enhance their impact by tailoring initiatives to address relevant social issues and offering incentives like preferred supplier status.
In conclusion, the study sheds light on how the B Corp movement catalyzes social impact through the escalation of prosocial engagement. By understanding the drivers and consequences of increasing social responsibility commitments, organizations can make informed decisions to drive positive change within their communities and beyond.
Reference: Sharma, G., Gehman, J., Boni, L., & Beveridge, A. J. (2025). The escalation of prosocial engagement: How the B corporation movement catalyzes social impact. Journal of Applied Psychology. (Preliminary online publication).
Image credit: Unsplash+