Profit with purpose? A theory of social enterprise
Timothy Besley () and
Maitreesh Ghatak ()
LSE Research Online Documents on Economics from London School of Economics and Political Science, LSE Library
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.
JEL-codes: N0 J50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-mic, nep-sbm and nep-soc
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Published in American Economic Journal: Economic Policy, 1, August, 2017, 9(3), pp. 19-58. ISSN: 1945-7731
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Journal Article: Profit with Purpose? A Theory of Social Enterprise (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:ehl:lserod:68572
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