Agency theory holds that managerial discretion over stakeholder decisions creates agency costs through altruistic redistribution. We test this claim in a principal-agent experiment where agents choose effort and transfers affecting a third party under unenforceable flat-wage contracts. We find...

We conducted a within-subject laboratory experiment in which participants decided whether to experience physical discomfort for charity, with or without additional personal compensation. Acceptance decreased with greater discomfort and increased with both larger charitable donations and personal...

Many workers value purpose and meaning in their jobs alongside income, and firms need to align these preferences with profit goals. This paper develops a dynamic model in which firms invest in ”purpose” to enhance job meaning and motivate effort. Workers, who differ in productivity, choose...