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Benefit Corporation Legislation and the Emergence of a Social Hybrid Category

Hans Rawhouser, Michael Cummings and Andrew Crane
California Management Review
Vol. 57, No. 3 (Spring 2015), pp. 13-35
DOI: 10.1525/cmr.2015.57.3.13
Stable URL: http://www.jstor.org/stable/10.1525/cmr.2015.57.3.13
Page Count: 23
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Benefit Corporation Legislation and the Emergence of a Social Hybrid Category
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Abstract

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

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