When it comes to promoting social causes, corporations have to find a way to appear genuine over posturing. Photo via Getty Images

It is becoming more and more common for companies to promote social causes such as human rights, LGBTQ+ rights, racial justice, and environmental sustainability. But organizations face a tricky dilemma when expressing commitments to helping address social issues: Stakeholders may interpret their words and deeds as shallow rhetoric or insincere posturing.

Terms like “greenwashing” (regarding environmentalism) or “pinkwashing” (regarding LGBTQ+ rights) are on the rise, and they signal heightened suspicions around companies doing something with ostensible objectives of bringing in positive social change.

It's critical for researchers and business leaders to investigate this duality of audience perception: actual virtue versus virtue-signaling. In an age of social media and polarization, consumers are increasingly likely to wonder: Does this company have ulterior motives? Are they trying to cover for their own wrongdoing? Are they actually walking the walk, or are they merely talking the talk?

When can companies avoid such suspicion of being pro-social imposters?

Minjae Kim of Rice Business and Ezra W. Zuckerman Sivan of MIT Sloan School of Management have taken a close look at the conditions under which upholding social norms will make firms appear to be “model citizens” and when it will make them seem like imposters.

Their theory is two-fold: First, those who follow through and do social good in response to an explicit “social mandate” are viewed as “model citizens.” Second, those who go out of their way to do social good without any prompts or social mandates are less likely to be trusted and will be widely viewed as imposters.

Think about the following situation. A “social mandate” is given to a politician when they are asked in an interview what they think about a particular cause. In that context, if they express support, audiences are less likely to suspect the politician of having ulterior motives or pandering to constituents. After all, if the politician does not express support in that situation, that is tantamount to expressing disapproval. Here, the interview question (i.e., “social mandate”) provides a cover of plausible deniability to any suspicions of ulterior motives. Law enforcement (e.g., police, prosecutors) often have this social mandate built into their professions.

But if the politician takes initiative — unprompted — to support the same cause, they will more likely be viewed with suspicion. They may instead appear to seek out social rewards associated with supporting the cause (e.g., good reputation), without the cover of plausible deniability.

To test their theory, Kim and Zuckerman launched a series of experiments involving 509 online participants based in the United States. The experiments sought to determine how respondents perceive individuals who encourage others to abide by social norms. Participants were specifically asked to identify which of two individuals they think are “model citizens” committed to the norm, or “imposters” who are uncommitted but trying to hide their own deviance.

The researchers found that people who encourage others to abide by social norms when prompted (“social mandate”) are perceived as “model citizens,” while those who do the same but without such prompts are more likely to appear as “imposters.” This duality provides a clear guideline for managers engaging in corporate social responsibility: When suspicions are rampant, launching pro-social campaigns without a plausible mandate may heighten suspicion regarding motives.

The larger question is how to build firms and societies where people can safely support norms (that we all support) without being suspected as imposters. After all, we want our own norms and moral principles to govern our lives. But in some situations, we may mistakenly vilify those who are trying to do good, based on the absence of some contextual “social mandate.”

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This article originally ran on Rice Business Wisdom and was based on research from Minjae Kim, assistant professor of organizational behavior at Rice University Jones Graduate School of Business, and Ezra Zuckerman Sivan, the Alvin J. Siteman (1948) Professor of Strategy and Entrepreneurship at MIT Sloan School of Management.

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Houston startup raises $6M to scale home-based healthcare platform

fresh funding

As healthcare systems race to expand care beyond hospitals and into the home, investors are placing bigger bets on the infrastructure needed to make that shift possible.

This month, Rosarium Health announced it has raised $6 million in seed funding led by Kalos Ventures, with participation from ResilienceVC, Rock Health Capital, Symphonic Capital, Black Tech Nations Ventures and others.

The investment will help the Houston-based startup continue to build its platform, which features a national network of 800-plus clinicians and 3,000-plus contractors to coordinate home accessibility upgrades and modifications for seniors and people living with disabilities.

For founder and CEO Cameron Carter, the company’s mission grew out of firsthand caregiving experiences.

“From my own personal caregiving experiences, I realized that the benefits exist on paper, but not in reality,” Carter said in a news release. “Families are being left to figure out the paperwork and installations all on their own, which shouldn’t be how this works.”

While Medicare Advantage and Medicaid plans have expanded coverage for home-based services and accessibility modifications, the logistics behind delivering those services often remain fragmented.

Rosarium’s platform coordinates the entire process, from clinical assessments and referrals to contractor management, documentation, reimbursement and installation.

“A clinician can document that a home isn’t safe and a plan can approve a benefit, but there’s no one that’s responsible for making sure the work actually gets done,” Carter says. “We built the missing piece.”

The company was founded in 2021 as Rose Health and was a 2023 participant in the Texas Medical Center’s Accelerator for HealthTech program. It has scaled quickly, building a network of more than 800 clinicians and 3,000 contractors across 34 states.

Rosarium is currently in-network for 1.2 million Medicare and Medicaid lives, with projected coverage expected to reach nearly 4 million by the end of the year, according to the release.

“We’re excited to back Cameron because he and the team at Rosarium are building the infrastructure healthcare needs right now to make the home a safe and comfortable place of care,” Kate Ballinger, investor at Kalos Ventures, added in the release.

As part of the recent investment, Ballinger will join Rosarium’s board of directors.

With eyes on the future, Rosarium plans to grow its partnerships with Medicaid and Medicare Advantage plans, including CalViva and Community Health Plan of Imperial Valley, strengthening its presence in California while expanding access to underserved communities.

Additionally, Carter predicts that home-based healthcare will be part of a broader transformation happening across the industry.

“There’s a growing recognition that health outcomes are shaped by what happens in the home,” he said in the release. “The future of healthcare isn’t just treating people after something goes wrong. It’s creating environments that help prevent those problems in the first place.”

Houston business mogul Tilman Fertitta acquires Caesars in $17.6B deal

Money Moves

Houston billionaire Tilman Fertitta may currently be serving as America’s ambassador to Italy, but his company is as busy as ever. Fresh off its move to revive the Houston Comets WNBA franchise, his company, Fertitta Entertainment, has announced a $17.6 billion deal to acquire Caesars Entertainment, Inc.

Speculation about the deal has been circulating since at least March, according to various media reports. The deal combines Fertitta’s well-known Golden Nugget casino brand with all of the properties in the Caesars’ portfolio, including Las Vegas hotels Caesars Palace, Harrah's, Paris Las Vegas, Planet Hollywood, Horseshoe, The LINQ Hotel, Flamingo, and The Cromwell.

Overall, the combined company will include 60 domestic casino resorts and gaming facilities; online gaming including sports betting, iCasino, and Caesar’s online poker platform; retail sports betting at over 200 third-party locations through the William Hill brand; and over 550 Fertitta Entertainment outlets, including more than 450 Landry's full-service restaurants across America. The companies will combine their loyalty programs, Caesars Rewards, Golden Nugget's 24 Karat Select Club, and Landry's Select Club.

The terms will see Caesars’ shareholders receive $31 per share. Fertitta Entertainment will also acquire approximately $11.9 billion of Caesars' outstanding debt.

The transaction will be financed through a combination of equity contributed by Fertitta Entertainment, assumed Caesars' debt, and new committed debt financing arranged by a group consisting of 10 banks. It is subject to approval by Caesars’ shareholders and government regulators.

Fertitta Entertainment is the Houston-based company behind a diverse array of hospitality businesses, including The Golden Nugget, The Post Oak Hotel, River Oaks District, the Kemah Boardwalk, and Houston’s Downtown Aquarium.

It also operates a number of prominent restaurant brands, including Mastro's Restaurants, Del Frisco's Double Eagle Steakhouse, Morton's The Steakhouse, The Palm, McCormick & Schmick's, Landry's Seafood House, The Oceanaire Seafood Room, and Saltgrass Steak House.

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This article first appeared on CultureMap.com.