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Benefit Corporation Legislation and the Emergence of a Social Hybrid Category

California Management Review, Vol. 57 No. 3, Spring 2015; (pp. 13-35) DOI: 10.1525/cmr.2015.57.3.13

Posted: 5 Feb 2015 Last revised: 17 Oct 2015

Hans Rawhouser

Lee Business School - University of Nevada Las Vegas

Michael E. Cummings

University of Nevada, Las Vegas - College of Business

Andrew Crane

University of Bath - School of Management

Date Written: February 4, 2015

Abstract

Previous research highlights the tensions that social hybrids face by spanning categories. This paper explores the emergence of legislation to support a new category for social hybrids, focusing on Benefit Corporation legislation in the United States. We present quantitative analysis of the state-level factors that make a state suitable for a social hybrid category (attractiveness for for-profit business and non-profits, existing social hybrid organizations, legislative intensity, political leanings) followed by qualitative analysis of the arguments marshaled for the creation of the Benefit Corporation legal form. Our findings raise important insights for research on social hybrids and suggest a range of practical implications.

Keywords: social hybrid organizations, public policy, legal aspects of business, nonprofits

Suggested Citation

Rawhouser, Hans and Cummings, Michael E. and Crane, Andrew, Benefit Corporation Legislation and the Emergence of a Social Hybrid Category (February 4, 2015). California Management Review, Vol. 57 No. 3, Spring 2015; (pp. 13-35) DOI: 10.1525/cmr.2015.57.3.13. Available at SSRN: https://ssrn.com/abstract=2560483

Hans Rawhouser (Contact Author)

Lee Business School - University of Nevada Las Vegas ( email )

4505 S. Maryland Parkway
Las Vegas, NV 89154
United States
702-895-1768 (Phone)
702-895-4370 (Fax)

HOME PAGE: http://www.unlv.edu/people/hans-rawhouser

Michael E. Cummings

University of Nevada, Las Vegas - College of Business ( email )

United States

Andrew Crane

University of Bath - School of Management ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom

HOME PAGE: http://www.bath.ac.uk/management/faculty/andrew-crane.html

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