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theses

As corporate profits, stock valuations and top executive pay reach record levels at the same time that average worker wages remain stagnant and persistently high unemployment devastates many communities, many academics and policymakers are questioning whether the current form of global capitalism is sustainable. The shareholder model that has come to dominate among global corporations privileges the interests of owners over employees, the community and other societal interests. But can alternative models of corporate governance and ownership co-exist that create profitable companies which share these benefits more equitably with employees and other external stakeholders? This dissertation will explore this question by providing one the first rigorous academic analyses of a new corporate standard: B Corporations. The study elaborates on the concepts of employee ownership and responsible stakeholder management (RSM) and further empirically analyzes the relationships between the two. Three core questions delineate this research. Is a firm that adopts a set of strategic human resource practices that treat employees responsibly, also more likely to share ownership broadly with its employees? Are firms with broad employee ownership also more likely to engage in responsible external stakeholder management? And does giving employees greater involvement in running the firm enhance the relationship between broad ownership and RSM? This study relies on a unique sample of 347 private, mostly small-to-medium size firms which have sought B Corporation assessment or certification by the nonprofit B Lab. By investigating a homogeneous sample, this study is able to hold constant key determinants of RSM such as leadership commitment, structure, and culture, and focus on the variation of employee ownership and its relationship with RSM. The results partially support the hypothesis that broad employee ownership is positively associated with external RSM, in particular with a focus on the environment. While hypothesized as a moderator, employee involvement alone acts as a relevant predictor of external RSM. Further research is needed to differentiate employee / manager / founder ownership, and specify the dimensions of RSM. Additional empirical work should evaluate whether similar relationships hold true in public corporations that have different charters and governance relationships.

ETD_5552

Ph.D.

Includes bibliographical references

by Anne-Laure Pelissier Winkler

doi:10.7282/T37S7M3N

ETD doctoral

The author owns the copyright to this work.