Goodwill

Abstract: In the use of the phrase social capital I make no reference to the usual acceptation of the term capital, except in a figurative sense I do not refer to real estate, or to personal property or to cold cash, but rather to that in life which tends to make these tangible substances count for most in the daily lives of a people, namely, goodwill, fellowship, mutual sympathy and social intercourse among a group of individuals and families who make up a social unit, the rural community, whose logical center is the school In community building as in business organization and expansion there must be an accumulation of capital before constructive work can be done In building up a large business enterprise of modern proportions, there must first be an accumulation of capital from a large number of individuals When the financial resources of these several individuals have been brought together under effective organization and skilful management, they take the form of a business corporation whose purpose is to produce an article of consumption-steel, copper, bread, clothing-or to provide personal conveniences-transportation, electricity, thoroughfares The people benefit by having such products and conveniences available for their daily needs, while the capitalists benefit from the profits reserved to themselves as compensation for their services to society Now, we may easily pass from the business corporation over to the social corporation, the community, And find many points of similarity The individual is helpless socially, if left entirely to himself Even the association of the members of one's own family fails to satisfy that desire which every normal individual has of being with his fellows, of being a part of a larger group than the family If he may come into contact with his neighbor, and they with other neighbors, there will be an accumulation of social capital, which may immediately satisfy his social needs and which may bear a social potentiality sufficient to the substantial improvement of living conditions in the whole community The community 130

Abstract: As a result of the controversy over the dimensionality of the ethos/source credibility construct and the associated plethora of empirical studies in the 1960s and 1970s, Aristotle's dimension of “goodwill” has been dismissed by many contemporary theorists and researchers. It is argued that this occurred as a result of errors made in the earlier empirical research and that “goodwill” can be measured, contrary to earlier claims, and should be restored to its former status in rhetorical communication theory. Empirical research is reported indicating the existence of the goodwill dimension as part of the structure of the ethos/source credibility construct and a measure of that dimension is provided with evidence for its reliability and validity.

Abstract: Marketers and investors face a heated, provocative debate over whether excelling in social responsibility initiatives hurts or benefits firms financially. This study develops a theoretical framework that predicts (1) the impact of corporate social performance (CSP) on firm-idiosyncratic risk and (2) the role of two strategic marketing levers, advertising and research and development (R&D), in explaining the variability of this impact among different firms. The results show that higher CSP lowers undesirable firm-idiosyncratic risk. Notably, although the salutary impact of CSP is greater in firms with higher (versus lower) advertising, a simultaneous pursuit for CSP, advertising, and R&D is harmful with increased firm-idiosyncratic risk. For theory, the authors advance the literature on the marketing-finance interface by drawing attention to the risk-reduction potential of CSP and by shedding new light on some critical but neglected roles of strategic marketing levers. They also extend CSP research by moving away from the long-fought battle for a universal CSP impact and toward a finer-grained understanding of when some firms derive more risk-reduction benefits from CSP. For practice, the results indicate that the “goodwill refund” of CSP is not unconditional. They also empower marketers to communicate more effectively with investors (i.e., doing good to better manage the risk surrounding firm stock prices).

Abstract: This article focuses on the predominance of obligated relational contracting in Japanese business. Consumer goods markets are highly competitive in Japan, but trade in intermediates, by contrast, is for the most part conducted within long-term trading relations in which goodwill give-and-take is expected to temper the pursuit of self-interest. Cultural preferences explain the unusual predominance of these relations in Japan, but they are in fact more common in Western economies than textbooks usually recognize. The growth of relational contracting in labour markets especially is, indeed, at the root of the rigidities supposedly responsible for contemporary stagflation. Japan shows that to sweep away these rigidities and give markets back their pristine vigor is not the only prescription for a cure of stagflation. The Japanese economy more than adequately compensates for the loss of allocative efficiency by achieving high levels of other kinds of efficiency. Relational contracts are just a way of trading off the short term loss involved in sacrificing a price advantage, against the insurance. As for relational contracting between enterprises, there are three things to be said. First, the relative security of such relations encourages investment in supplying firms. Second, the relationships of trust and mutual dependency make more for a rapid flow of information. Third, a by-product of the system is a general emphasis on quality.