CEO activism: a strategic framework for topic selection, considering issue maturity and congruence

Abstract

Purpose

This study proposes that strategic planning and execution can make CEO activism an effective public relations practice. It introduces a model for selecting activism topics, emphasizing issue maturity and congruence as critical factors. The study investigates how topic selection influences public trust in CEO activism and perceptions of CEO leadership, ultimately impacting public support for the advocated issue and company loyalty.

Design/methodology/approach

A randomized 2 × 2 experiment was conducted: issue maturity (mature vs controversial) and issue-company congruence (high vs low).

Findings

Generally, CEO activism on mature issues fostered greater public trust and favorable evaluations of transformational leadership compared to controversial issues. However, issue-company congruency significantly moderated these effects. Mature, high-congruence issues led to increased trust, positive leadership evaluations and greater advocacy and company loyalty. In contrast, mature issues with low congruency did not yield the same positive outcomes. Controversial issues with high congruency resulted in the lowest levels of trust, potentially leading to backlash and diminished the positive impact of CEO activism.

Originality/value

The results underscore the importance of strategic issue selection for CEO activism. Carefully chosen topics, considering both issue maturity and company-issue congruence, can effectively garner public support for the sociopolitical issue the CEO is advocating for while simultaneously enhancing perceptions of the CEO’s leadership and fostering company loyalty.

Citation

Kim, Y. (2024), "CEO activism: a strategic framework for topic selection, considering issue maturity and congruence", Corporate Communications: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/CCIJ-03-2024-0043