Social Responsibility and Firm's Objectives - Sciences Po Access content directly
Preprints, Working Papers, ... Year : 2020

Social Responsibility and Firm's Objectives

Michele Fioretti


This paper shows that firms’ objectives can extend beyond profit maximization. I focus on a for-profit firm that offers charity auctions of celebrities’ belongings. The firm’s donations affect both revenues and costs. Counterfactuals from a structural model comparing the actual donations with the profit-maximizing benchmark indicate that the firm donates beyond profit-maximization. Linking this result to a change in the capital structure, I demonstrate that the firm’s objectives include both profits and donations. I also estimate a modest increase in consumers’ willingness to pay due to donations, suggesting that demand cannot explain firms’ investments in social responsibility.
Fichier principal
Vignette du fichier
2020-fioretti-social-responsibility-and-firm-s-objectives-vf.pdf (1.46 Mo) Télécharger le fichier
Origin : Publisher files allowed on an open archive

Dates and versions

hal-03393065 , version 1 (21-10-2021)
hal-03393065 , version 2 (29-09-2022)


Attribution - NoDerivatives



Michele Fioretti. Social Responsibility and Firm's Objectives. 2020. ⟨hal-03393065v1⟩
77 View
101 Download


Gmail Facebook X LinkedIn More