How Bordeaux Became Bordeaux: Persistence and Privilege

About the seminar topic

We examine how B Corporation certification affects customer satisfaction through both symbolic and substantive mechanisms, addressing longstanding debates about certification effectiveness on firms and research on corporate social responsibility and environment, social and governance. Using a multi-method approach combining archival analysis (regression discontinuity) of a matched sample of 940 firms and controlled laboratory experiments, we find that B Corp certification significantly enhances customer ratings through improved employee and customer satisfaction. Our archival analysis reveals that certified B Corps achieve 16-22% higher customer ratings compared to conventional firms. 

Critically, firms with stated social missions but lacking formal certification (B Corp-like firms) demonstrate weaker effects, underscoring the value of third-party verification and ongoing monitoring. Controlled experiments using identical products show that B Corp certification creates perceptual enhancement effects, with participants rating the same ice cream significantly higher when believing it originated from certified B Corps, particularly in family business contexts where ethical considerations are salient. These findings demonstrate that effective certification functions through dual pathways: substantive improvements in organisational practices that enhance stakeholder experiences and symbolic signalling that activates values-based perceptual processes. Our research bridges signalling and institutional theories by showing that certification’s value emerges from coupling credible external signals with authentic internal transformation.

Speaker bio

Wesley D. Sine is The John and Dyan Smith Professor of Management and Family Business at Cornell University.  Sine received his PhD in Organisational Behaviour with a minor in statistics from Cornell University. Professor Sine’s research focuses on institutional theory technology innovation and the emergence of new economic sectors and entrepreneurship in the United States, Latin America and the Middle East. He explores issues related to industry and technology evolution and new venture structure and strategy. He has examined a diverse set of economic sectors ranging from the electric power industry to the emergence of the internet. He has taught courses focused on entrepreneurship, technology and innovation to graduate students in science, engineering and business.  He has consulted with and taught executives in the United States, Europe, Latin America, Asia and the Middle East.  In 2011 he worked with the US Department of State as a delegate to foster entrepreneurship in North Africa.  

Sine has published papers in and served on the editorial board of top management journals such as Administrative Science Quarterly, Academy of Management Journal, Management Science, Organization Science, Strategic Management Journal and Research Policy. 

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No registration required. If you have any questions about this seminar, please email Luke Slater.