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Private organizations are increasingly relied on, explicitly and implicitly, to carry out public objectives. But given that profit and public motives are not always aligned, why do private firms behave in publicly responsible ways? Specifically, how do diverse regulative, economic, normative, and cultural influences combine to enable or constrain publicly responsible behavior? This analysis focuses on a specific group of private actors: mortgage lenders. Through semi‐structured interviews with private lending agents participating in a public mortgage program, this analysis investigates influences that contribute to publicly responsible behavior. From the interviews, four different publicness dispositions are identified: pecuniary (sensitive to economic and regulative constraints), traditional (sensitive to regulative and isomorphic constraints), altruistic (sensitive to isomorphic and cultural‐cognitive influences), and opportunistic (sensitive to multiple influences). Even for organizations (and their actors) operating within the same policy context and the same public program, responses to political authority likely are contingent on varying publicness dispositions.
What are the differences between the public and private sectors as well as their interrelationships in light of the recent financial crisis? Has the global economic crisis fundamentally shifted the boundaries between the two sectors? This essay examines the nature and extent of the shift. The authors present an analysis of the Troubled Asset Relief Program (TARP) to highlight the massive transformations that are taking place and to introduce lessons for future policy initiatives....
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