Public perceptions and consumer preferences for B Corps - greenwashing or trustworthy novel philanthropic actors?

Hybrid enterprises such as B Corps are transforming the philanthropic landscape. Driven by both profit and purpose, these private-sector actors promote prosocial and pro-environmental practices and offer novel and convenient ways for the public to pair philanthropic activities with consumption. The present study investigates how consumers perceive these novel companies, specifically their awareness and trust of B Corps, as well as the probability of them preferentially choosing B Corps products and services. Findings show that, while familiarity remains low, once respondents received information about B Corps, general trust in the concept was above average, which was also reflected in their preferences for B Corps food and clothing. Interestingly, this preference did not extend to services, indicating a need for more research and perhaps better communication and marketing in this sector. We further explored factors which might influence this preference and found that familiarity and trust, as well as a belief that B Corps’ higher prices are necessary and increase quality, all increased the probability of choosing B Corps, as did certain more general considerations deemed important when choosing a brand, such as a view towards better environmental practices and ethical labor. Succinctly, B Corps have potential as powerful new players promoting public good, but their ability to succeed relies on more efficient communication and positive perceptions of their activity. Moreover, while these findings shed light on current perceptions and effects of the B label, a majority of choice variance remains unexplained, indicating the importance of future studies.