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A Big Hurdle Do-Good Companies Face

An upfront solution to the downside of social enterprises

Saerom Lee
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Karen Winterich
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Lisa E. Bolton
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Tue, 08/29/2017 - 12:02
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Have you ever wondered who collects the clothes you stuff into that donation drop box in your neighborhood? Chances are, you assumed it was a nonprofit, but that box actually may instead belong to a for-profit social venture. If you don’t know what that means, you’re not alone.

ADVERTISEMENT

Years ago, just about every organization intent on doing good was a nonprofit. Today, hybrid outfits blend the traditional profit-seeking goals of companies with a social purpose intended to benefit society. Also known as for-profit social enterprises and public-benefit corporations, they can be hard to spot.

As consumer psychologists, we wanted to know what people think of this new type of company.

 …

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