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Profit with purpose? A theory of social enterprise

Besley, Timothy and Ghatak, Maitreesh (2017) Profit with purpose? A theory of social enterprise. American Economic Journal: Economic Policy, 9 (3). pp. 19-58. ISSN 1945-7731

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Identification Number: 10.1257/pol.20150495

Abstract

When social benefits cannot be measured, an organization that selects managers based on pro-social motivation can be used to balance profits with a social purpose. This paper develops a model of social enterprise based on selection of citizen-managers to run firms with flexible missions. We analyze organizational choice between social enterprise, for-profits, and non-profits. The paper also develops the implications of matching between founders and managers based on their preferences for the mission.

Item Type: Article
Official URL: https://www.aeaweb.org/journals/pol
Additional Information: © 2016 American Economic Association
Subjects: H Social Sciences > HC Economic History and Conditions
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Sets: Departments > Economics
Date Deposited: 08 Dec 2016 14:56
Last Modified: 11 Oct 2017 11:49
URI: http://eprints.lse.ac.uk/id/eprint/68572

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