Goodwill is a concept used to refer to an individual or a business's ability to exert influence within a
community,
club,
market or another type of
group, without having to resort to the use of an asset, such as
money or
property— either directly or by the creation of a
lien (i.e. borrowing)—or the use of force. The concept can also be used in
organizational behaviour,
political science, and
sociology, where it is closely related to the concept of
social capital. Different entities will have different amounts of goodwill within the group.
Examples
- A bank has goodwill within the banking system and a particular market because of other banks' and market participants' faith that it will honor all debts, refrain from unjustifiably issuing new currency and that it will, in general, perform all transactions in a correct manner. It can, as a consequence, attract financial capital from the market by borrowing without having to secure such loans with real-estate or other type of guarantees.
- Likewise, an individual can have goodwill towards a financial institution by being able to contract a credit without having a lien placed on a piece of property and without having to provide a guarantor.
- The head of government (e.g. Prime Minister) of a country has goodwill before the people of a state because they comply with and support his or her decrees out of expectation that some form of punishment would follow noncompliance.
- The concept of goodwill also applies on a smaller scale, with regard to, for example, customer-vendor relations and even one's standing (or respect) among one's acquaintances.
Sources of goodwill
An entity typically has goodwill because of others'
trust that it will act in the common interest or, more generally, that it will live up to its claims. Sometimes, the
trust needs only extend to that the entity will act
a bona fide and thus is not broken in the eventuality that it failed to comply with its promises due to external factors. It is possible, however, that an entity perceived to be more capable of achieving its claims enjoys more goodwill than another, less capable one, despite the latter's good faith (for example a person known to "get what he wants" might enjoy more goodwill than one known to "give up at the first sign of difficulty").
Goodwill in societies
Goodwill is generally not used to refer to power seized through use of force. For example, the head of an invading army is seldom said to have goodwill before the people of the invaded territories, despite the fact he has real power over them. It can be argued that, in this example, the army is in fact an asset used to maintain power.
One's goodwill is also affected by one's
face. A loss of face typically, but not always, translates in a loss of goodwill.
See also
Goodwill may refer to:
- Goodwill Industries, a non-profit organization providing job training and employment services to people with disabilities.
- Goodwill (business), an individual or a business's ability to exert influence within a group without having to resort to the
..... Click the link for more information. A community is a social group of organisms sharing an environment, normally with shared interests. In human communities, intent, belief, resources, preferences, needs, risks and a number of other conditions may be present and common, affecting the identity of the participants and
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club is an association of people united by a common interest or goal. The service club, for example, exists for voluntary or charitable activities; there are clubs devoted to hobbies and sports, social activities clubs, political and religious clubs, and so forth.
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market is a social arrangement that allows buyers and sellers to discover information and carry out a voluntary exchange of goods or services. It is one of the two key institutions that organize trade, along with the right to own property.
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In sociology, a group is usually defined as a collection of humans or animals, who share certain characteristics, interact with one another, accept expectations and obligations as members of the group, and share a common identity.
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Money is any token or other object that functions as a medium of exchange that is socially and legally accepted in payment for goods and services and in settlement of debts.
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Property law
Part of the common law series
Acquisition of property
Gift · Adverse possession · Deed
Lost, mislaid, and abandoned property
Alienation · Bailment · License
Estates in land
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Property law
Part of the common law series
Acquisition of property
Gift · Adverse possession · Deed
Lost, mislaid, and abandoned property
Alienation · Bailment · License
Estates in land
..... Click the link for more information.
Organizational studies, organizational behaviour, and organizational theory are related terms for the academic study of organizations, examining them using the methods of economics, sociology, political science, anthropology, communication studies, and psychology.
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Political science is a branch of social science concerned with theory, description, analysis and prediction of political behavior, political systems and politics broadly-construed.
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Sociology (from Latin: socitus, "companion"; and the suffix -ology, "the study of", from Greek λόγος, lógos, "knowledge") is the systematic and scientific study of society and societal behavior.
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Social capital, referring to connections within and between social networks, is a core concept in business, economics, organisational behaviour, political science, public health, and sociology.
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bank is a commercial or state institution that provides financial services , including issuing money in various forms, receiving deposits of money, lending money and processing transactions and the creating of credit.
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Financial Capital vs. Real Capital
Financial capital refers to the funds provided by lenders (and investors) to businesses to purchase real capital like equipment for producing goods/services.
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Credit is the provision of resources (such as granting a loan) by one party to another party where that second party does not immediately pay the first party for the resources in full, thereby generating a debt, and instead arranges either to pay for or to return those resources
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Property law
Part of the common law series
Acquisition of property
Gift · Adverse possession · Deed
Lost, mislaid, and abandoned property
Alienation · Bailment · License
Estates in land
..... Click the link for more information.
A surety is a person who agrees to be responsible for the debt or obligation of another. Additionally, the situation in which a surety is most typically required is when the ability of the primary obligor or to perform its obligations under a contract is in question, or when there
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Head of Government is the chief officer of the executive branch of a government, often presiding over a cabinet. In a parliamentary system, the head of government is often styled Prime Minister, Premier, etc.
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A decree is an order made by a head of state or government and having the force of law. The particular term used for this concept may vary from country to country — the executive orders made by the president of the United States, for example, are decrees.
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Respect is an assumption of good faith and competence in another person or in the whole of oneself. Depth of integrity, trust, complementary moral values, and skill are necessary components.
Respect adds general reliability to social interactions.
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This article has been tagged since September 2007.
..... Click the link for more information. For other uses, see Trust.
Trust is a relationship of reliance. A trusted party is presumed to seek to fulfill policies, ethical codes, law and their previous promises.
..... Click the link for more information. For other uses, see Trust.
Trust is a relationship of reliance. A trusted party is presumed to seek to fulfill policies, ethical codes, law and their previous promises.
..... Click the link for more information. This article is about the album titled Bona Fide. For the Latin phrase bona fides, see good faith.
Bona FideStudio album by Wishbone Ash
Released May 21, 2002
Genre Rock
Producer Andy Powell
..... Click the link for more information. Face refers to two separate but related concepts in Chinese social relations. One is mianzi (Chinese: ), and the other is lian (Traditional Chinese: 臉, Simplified Chinese: ), which are both used commonly in everyday speech rather than in formal writings.
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For other uses, see Goodwill.
Goodwill is an accounting term used to reflect the portion of the market value of a business entity not directly attributable to its assets and liabilities; it normally arises only in case of an acquisition.
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