(2024) Domingos, Fernando D.; Caluz, Antonio Daniel
This paper examines how private firms can align financial and social goals by including disenfranchised populations as beneficiaries. Using a quasi-experimental study in a Brazilian private for-profit school, we explore whether enfranchised (non-vulnerable) and disenfranchised (income-constrained) students benefit from interacting in more diverse settings. First, we find that diversity improves the educational outcomes of enfranchised students. Second, as a socially desirable ripple effect, we observe an increase in the willingness of their families to support social inclusion through donations. Our results demonstrate that private firms can connect disenfranchised and enfranchised groups, fostering mutual value creation and aligning social and commercial objectives. We conclude by discussing the conditions that facilitate these mechanisms in various organizational settings.
