Imagine you’re the CEO of a casual dining chain. One of your executives comes to you with a proposal: she wants to lower the quality of service at the restaurants, reduce product safety standards, use deceptive marketing practices, lower employee pay, and adopt worse environmental practices. Would you expect these changes to result in increased, sustained profitability?
People Think Companies Can’t Do Good and Make Money. Can Companies Prove Them Wrong?
Research shows “anti-profit beliefs” are widespread.
November 28, 2017
Paul Garbett for HBR
Summary.
Anti-profit beliefs do not appear to be a quirk of particular brand associations or negative media attention received by certain firms. Americans assume that higher profits are associated with less societal value across entire industries as well. Moreover, they believe that a variety of harmful business practices– including overcharging consumers, maintaining lower safety standards, exploiting legal loopholes, and degrading culture–are more prevalent in more profitable industries.