Managerial Contracting and Corporate Social Responsibility

@inproceedings{Baron2006ManagerialCA,
  title={Managerial Contracting and Corporate Social Responsibility},
  author={David P. Baron},
  year={2006}
}
  • David P. Baron
  • Published 2006
  • Economics, Business
  • This paper presents a positive theory of corporate social responsibility set in a managerial capitalism context in which managers instead of markets allocate resources, including social expenditures. The theory focuses jointly on the operational management of the firm and on its social expenditures as influenced by a compensation contract chosen by shareholders in a capital market that prices social expenditures. The theory provides three explanations for compensation systems that encompass… CONTINUE READING

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