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Companies are Villains with Good True Selves

Author

Listed:
  • Zarema Khon

    (Nazarbayev University, Graduate School of Business)

  • Julian De Freitas

    (Harvard Business School)

  • Samuel G. B. Johnson

    (University of Waterloo)

Abstract

People hold negative views of companies. Yet, in ten studies (N=4,219), we document an apparent paradox: Despite these negative stereotypes, people believe that at their core, companies are comprised of morally good traits. We explain this apparent contradiction by distinguishing between company behavior versus identity: while people expect companies to behave badly, they view them as essentially good. We document this effect in the context of behavior change - we find that people believe a company's identity is lost more after morally deteriorating (going from good to bad) than after morally improving (going from bad to good). This moral asymmetry is resilient to different types of company industries and company sizes, and is rooted in psychological essentialism rather than loss aversion or social desirability bias. In short, companies are villains-but only in flesh, not bone.

Suggested Citation

  • Zarema Khon & Julian De Freitas & Samuel G. B. Johnson, 2026. "Companies are Villains with Good True Selves," Working Papers 2026/07, Nazarbayev University, Graduate School of Business.
    • Handle: RePEc:asx:nugsbw:2026-07
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