Choice Review

The role of private corporations in society is here subjected to lively discussion by Marquis (Cornell Univ.), packaged in terms of environmental, social, and governance (ESG) requirements with "sustainability" as an added concern. B Corporations are firms that have agreed to meet key benchmarks of what someone defines as ESG and sustainability compliance. This arrangement is presumably of benefit to society at large, as well as to boards of directors, management, suppliers, customers, communities, special interest groups, and other stakeholders. Meeting the requirements to qualify isn't easy, and it is easy to overlook the sometimes serious differences among stakeholders. No doubt there are cases where certain stakeholders get railroaded to help satisfy the preferences of others. If there are financial costs associated with B Corporations, they may suffer in competition with rivals that are cost-free. Yet, B Corporations may be exposed to less regulatory and reputational risk than their non-compliant rivals, boosting valuation. Of course, criteria for judging corporate conduct can differ around the world and change over time. Marquis does a good job of laying out the complex arguments in favor of B Corporations. The work will be worthwhile reading for current and future pension beneficiaries with a lot of exposure to corporate stock portfolios. Summing Up: Highly recommended. Upper-division undergraduates. Graduate students and professionals. --Ingo Walter, emeritus, New York University