Could it be the more the merrier in a B Corp? A spatial error model

Considering the spread of B Corp certification and its success among stakeholders, particularly consumers, this project aims to assess the steps implemented by Italian companies, by exploring the sides of the workers and governance. The aim of this work-in-progress consists into test if the relationship between the overall score produced by B Lab and the number of employees can be influenced by the geographical location of the firms. This project seeks to analyse 121 B Corp firms located in Italy. Ordinary Least Square (OLS) and Spatial Error (SE) models were implemented in the analysis for the year 2019. This work reveals some spatial clustering in the residuals. This first research draft aims to provide the basis for appropriate reflections that could prove useful for managerial decisions. Indeed, if geographical location affects the relationship between the B Corp score and the organisational standards of firms, a twofold purpose of the work is suggested. First, firms that are not yet B Corp would benefit greatly by learning from neighbouring firms that have already achieved certification. Second, companies that still exhibit low B Corp scores can be inspired and replicate the successful organisation of neighbouring B Corp companies with high scores.