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Hands, hearts and hybrids: economic organization, individual motivation and public benefit

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  • Le Grand, Julian
  • Roberts, Jonathan

Abstract

Should policy makers rely upon firms motivated by profit and guided by the invisible hand of the market to promote public benefit or upon government agencies or nonprofits motivated by the compassionate heart? In this article we examine how the motivational assumptions implicit in these forms of economic organisation impact on their ability to promote the public good in key areas of the economy. We argue that in many circumstances it would be better to for policy makers to work with hybrid organisations: organisations that aim for both social and economic returns and whose stakeholders display the true complexity of individual motivation.

Suggested Citation

  • Le Grand, Julian & Roberts, Jonathan, 2021. "Hands, hearts and hybrids: economic organization, individual motivation and public benefit," LSE Research Online Documents on Economics 117335, London School of Economics and Political Science, LSE Library.
    • Handle: RePEc:ehl:lserod:117335
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    File URL: http://eprints.lse.ac.uk/117335/
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    References listed on IDEAS

    as
    1. Mueller,Dennis C., 2003. "Public Choice III," Cambridge Books, Cambridge University Press, number 9780521894753, November.
    2. J. Dees, 2012. "A Tale of Two Cultures: Charity, Problem Solving, and the Future of Social Entrepreneurship," Journal of Business Ethics, Springer, vol. 111(3), pages 321-334, December.
    3. Le Grand, Julian, 2006. "Motivation, Agency, and Public Policy: Of Knights and Knaves, Pawns and Queens," OUP Catalogue, Oxford University Press, number 9780199298914, Decembrie.
    4. Julian Le Grand, 2007. "Introduction to The Other Invisible Hand: Delivering Public Services through Choice and Competition," Introductory Chapters, in: The Other Invisible Hand: Delivering Public Services through Choice and Competition, Princeton University Press.
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    Cited by:

    1. Vincenzo Riso & Mouhcine Tallaki & Enrico Bracci & Silvia Cantele, 2024. "The transition towards benefit corporations: What are the roles for stakeholders?," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 904-916, February.

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    More about this item

    Keywords

    hybrid; social enterprise; purpose-driven corporation; profit-maximisation; motivation;
    All these keywords.

    JEL classification:

    • M00 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - General - - - General

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