We theoretically analyse the relationship between Corporate Social Responsibility (CSR) and tax avoidance of an oligopolistic firm. The firm maximises a weighted sum of profits and a CSR objective which depends on output and the firm's contribution to public good provision, i.e. tax payments....

Large organizations often require employees to collaborate with others who may see the world differently. Yet, little is known about whether misalignment in personal values with managers or colleagues affects performance. Using survey and administrative data from a world-leading bank, we find...

Many tasks can only be completed if several people contribute. Likewise, many institutions, e.g. voting rules, require the support of several people to implement specific decisions. In such situations, individual costs from supporting may decrease in the number of supporters. This holds true for...

We investigate the elasticity of moral ignorance with respect to monetary incentives and social norm information. We propose that individuals suffer from higher moral costs when rejecting a certain donation, and thus pay for moral ignorance. Consistent with our model, we find significant...

The neoclassical model in economics envisages humans as amoral and self-regarding (Econs). This model, also known as the homo-economicus model, is not consistent with the empirical evidence. In light of the evidence, the continued use of the homo-economicus model is baffling. It also stymies...

Whistle-blowing by employees plays a major role in uncovering corporate fraud. Various recent laws aim at improving protection of whistle-blowers and enhancing their willingness to report. Evidence on the effectiveness of such legislation is, however, scarce. Moreover, critics have raised...

We explore the role of cheap excuses in product choice. If a product improves upon one ethically relevant dimension, agents may care less about other, completely independent ethical facets of the product. This "static moral self-licensing" would extend the logic of the well studied moral...

Using an incentivized online classroom experiment, we assess the effectiveness of deontological vs. consequentialist moral reminders. Participants were told that they are the responsible public servant for acquiring a Covid-19 vaccine, providing them with the opportunity to generate some extra...

We examine nonpecuniary preferences across a broad set of corporate actions using a representative sample of the U.S. population. Our core findings, based on largescale online surveys, are that (i) self-reported nonpecuniary concerns are large both for stock market investors and non-investors;...

We use a ten-round online mind game to determine whether the effect of honesty nudges depends on timing and content. Reminding individuals about the right thing to do increases honesty. Including information that it is possible to assess an individual's dishonesty strengthens the effect of the...