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| Eric Van den Steen
Why Do Firms Have "Purpose"? The Firm's Role as a Carrier of Identity and Reputation. Rebecca Henderson, Eric Van den Steen, May 2015 , Paper. "This article develops a theory in which a firm's adoption of a prosocial purpose can increase profitability by strengthening employees' reputation and identity--leading to higher effort and lower wages--as long as implementing purpose is costly with respect to direct monetary payoffs. Employees who value…