The Risky Samaritan Effect: How Risky Benefits to Social Innovation Pay Off

Jackie Silverman and Ike Silver, Marketing, The Wharton School

Abstract: Consumers are often skeptical of social innovation (e.g., corporate social responsibility), thinking that firms undertake such innovations to increase profit rather than to “do the right thing.” How can firms convey the social and monetary benefits of investing in social innovations to consumers and stakeholders to best improve their brand image? In this work, we find that by communicating the potential riskiness of social innovation (e.g., that such investment could yield no profit), firms are seen as more purely motivated and more socially good, compared to when the social innovation has the same expected value without risk.

Michelle Eckert is Marketing and Communications Coordinator for the Mack Institute, where she works to engage students, researchers, and corporate partners in opportunities for collaboration. Michelle received her B.A. in Art from Valparaiso University in 2007. Her background includes two AmeriCorps terms of service working to teach mathematics, computer literacy, and job readiness skills to out-of-school youth in Philadelphia, focusing particularly on promoting access to post-secondary education.