08/08/2017

A Social Good Problem

Social good companies suffer the worst of all worlds

A recent report in the Journal of Consumer Research suggests that the for-profit motive makes social good companies seem less altruistic compared with nonprofits, yet less authoritative than traditional for-profit companies. The problem, researchers say, comes down to messaging.

For-profit companies may have their hearts in the right place—taking on the spirit of nonprofits, if not the tax status—by focusing on the social benefit of their work.

But that doesn’t necessarily mean that the public appreciates the distinction. According to a recent report in the Journal of Consumer Research, the public often struggles to see the distinction when a stated profit motive is involved. And as a result, social good companies suffer the worst of all worlds—they don’t get the reputation boost of being a nonprofit, nor do they receive the boost that for profits do.

Please click here to read the complete article from Associations Now.