Non-Profits Are Seen as Warm and For-Profits as Competent: Firm Stereotypes Matter

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Stanford Graduate School of Business

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Shared March 5, 2010

Consumers frequently assign stereotypical views to nonprofits, categorizing them as warm, generous and caring organizations, but assuming their business abilities will be less competent than their for-profit peers'. In contrast, for-profit companies are seen as more competent from a balance sheet perspective, but are not necessarily socially aware. Jennifer Aaker presented at the "Small Steps, Big Leaps: The Science of Getting People to Do the Right Thing" research briefing at the Stanford Graduate School of Business, co-sponsored by the Center for Social Innovation.