Reflections on the roles of governance and leadership in profit-for-purpose companies: A European–United States comparative perspective

Abstract

The profit-for-purpose movement has gained traction worldwide, with companies designating the second mission dedicated to a social purpose legislatively or by becoming a certified B Corp. This study reflects on the governance structure and associated accountability enacted by legislation in three countries where national legislation exists – the United States, Italy, and France. It also discusses accountability stemming from the B Corp certification. Given the limitations in accountability deriving from a governance structure or the B Lab certification, the paper reflects on the importance of leadership for the successful management of profit-for-purpose ventures and provides exemplars. We conclude by reflecting on the future of profit-for-purpose companies considering the recent environmental, social, and governance (ESG) movement and directions for future research examining key issues for dual-purpose companies.