What does goodwill mean?
Goodwill means friendliness, benevolence, and a willingness to support or cooperate with other people. It can describe an individual attitude, as when someone acts with goodwill toward a colleague or stranger, or the positive relations between people, organizations, and communities. The word often appears in formal and diplomatic language, including phrases such as “build goodwill,” “goodwill gestures,” and “a goodwill visit.” In business, goodwill has a more technical meaning: it represents the value of a company’s reputation, customer relationships, brand, and other non-physical advantages. A business with loyal customers, a respected name, and strong relationships may possess valuable goodwill. The term is generally neutral in tone but tends to imply generosity, cooperation, and a desire to avoid hostility. It is especially useful when describing actions that strengthen trust or preserve harmonious relations.
nounA friendly, benevolent attitude toward other people, or a state of friendly relations and cooperation. In business, it can also mean the value of a company’s reputation, customer relationships, and other intangible advantages.
- A friendly, helpful, and benevolent attitude toward other people.
- Friendly and cooperative relations between people, groups, or communities.
- In business and accounting, the value of a company’s reputation, customer relationships, brand, and other intangible advantages.
"The gesture was intended to build goodwill between the two communities."
"Her calm response resolved the dispute without sacrificing goodwill."
"The company’s strong reputation and loyal customer base contributed substantial goodwill to its sale."
Rare. Goodwill is normally treated as an uncountable noun, but the plural can distinguish goodwill built by different organizations or toward different groups.
"The local shops built goodwills among residents by sponsoring community events."
Goodwill can describe a feeling between people, a gesture between communities, and an intangible asset belonging to a business.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does goodwill come from?
Goodwill is a compound of “good” and “will,” both of which entered English through Middle English from Old English forms. The phrase has long conveyed a friendly or benevolent disposition, while the sense of a business’s valuable reputation developed in modern commercial and accounting usage. The related expression “good will” has also had legal and ceremonial meanings, especially the goodwill of a business transferred to a new owner.
How goodwill is actually used
Goodwill is usually an uncountable noun and is often more formal than simple expressions such as “kindness” or “friendliness.” In business contexts, it can have a measurable financial meaning, while in personal and diplomatic contexts it usually describes friendly intentions or relations.
Easily confused with goodwill
“Goodwill” usually means a general friendly attitude or a business asset, while “good will” more often refers to wishes of happiness or prosperity, as in “season’s greetings,” and is sometimes a formal legal or religious expression.