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Article
Publication date: 1 September 2023

KyuJin Shim, Young Kim and ChihYao Chang

This study aims to propose a model of publics' ethical activism, testing the role of emotional outrage in an extended framework of the previously established STOPS model. Thus…

Abstract

Purpose

This study aims to propose a model of publics' ethical activism, testing the role of emotional outrage in an extended framework of the previously established STOPS model. Thus, this study aims to investigate (1) how ethical perception of a social issue affects situational motivation that leads to participation in public activism, and (2) how emotional outrage plays a role in mediating between situational motivation and activism behaviors.

Design/methodology/approach

The study aims at investigating the mediating role of emotional outrage between situational motivation and activism behaviors, which have not been investigated thoroughly in public relations research. By conducting a national survey with 386 people (N = 386) living in Australia, the study's suggestive model was tested in the context of two ethical issues (e.g. climate change and anti-racism). This study found that people who perceive an ethical issue are likely to be motivated to participate in activism behaviors. Specifically, three situational perceptions (i.e. problem recognition, constraint recognition and involvement recognition) were found to be significant factors affecting situational motivation (SM) in problem solving. A high level of emotional outrage was found to play a mediating role between SM and consequential ethical activism behaviors. The more people feel outraged about an ethical issue, the more likely they will engage in punitive behavior. This study contributes to the theoretical development of public relations by illuminating how situational perceptions lead to emotional outrage that promotes behavioral intentions in an ethical context. This study also suggests that a practitioner should be sought to manage the levels of perceptual factors when setting up a communication plan in response to an ethical public crisis.

Findings

This study found that people who perceive an ethical issue are likely to be motivated to participate in activism behaviors. Specifically, three situational perceptions (i.e. problem recognition, constraint recognition and involvement recognition) were found to be significant factors affecting situational motivation (SM) in problem solving. A high level of emotional outrage was found to play a mediating role between SM and consequential ethical activism behaviors. The more people feel outraged about an ethical issue, the more likely they will engage in punitive behavior.

Research limitations/implications

This study substantiates how three perceptual antecedents may conjointly affect situational motivation. Also, the findings in this study also contribute to theoretical development in predicting ethical activism intentions. Another contribution of this study is to demonstrate the mediating role of emotional outrage between situational motivation and ethical activism. The authors strived to explore individuals' perceptions and its impact on intention to boycott against ethical problematic social issues. It should be considered that this study used a hypothetical and manipulated situation where respondents are exposed to the visual stimuli that focus on the moral problems that those specific issues have raised.

Practical implications

First, as problem recognition plays a prime mover role in the overall problem-solving process in an ethical context, organizations should reduce individual's ethical problem recognition. When setting up a communication plan, an organization should showcase their positive role in addressing the ethical problems (e.g. to show Adani's commitment to indigenous people and efforts to protect the environment). The response strategy should be effective enough to create an “ethical dilemma,” which refers to a situation in which one has a difficult choice to make between two ethical options.

Originality/value

This study contributes to theoretical development of public relations by illuminating how situational perceptions lead to emotional outrage that promotes behavioral intentions in an ethical context. This study also suggests that a practitioner should be sought to manage the levels of perceptual factors when setting up a communication plan in response to an ethical public crisis.

Details

Corporate Communications: An International Journal, vol. 28 no. 6
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 17 October 2023

Mai Dao and Hongkang Xu

In this paper the authors aim to examine whether shareholder activism is associated with accounting reporting complexity (ARC).

Abstract

Purpose

In this paper the authors aim to examine whether shareholder activism is associated with accounting reporting complexity (ARC).

Design/methodology/approach

The authors employ ordinary least squares (OLS) and a sample of 19,530 firm-year observations (representing 3,377 unique firms) over the 2010–2019 period to test the prediction.

Findings

The authors find that firms with shareholder activism provide more complex accounting reporting. Further, both types of activism (including Concern & Dispute and Control & Discussion) are positively associated with ARC. The authors also find that the association between shareholder activism and ARC is more pronounced when the firms have a higher level of litigation risk and a higher proportion of institutional ownership. Collectively, the findings suggest that firms with shareholder activism may be under more pressure to disclose more accounting items, leading to more complex accounting reporting.

Originality/value

The study may be informative to regulators considering the costs and benefits of shareholder activism in financial reporting.

Details

Journal of Accounting Literature, vol. 46 no. 1
Type: Research Article
ISSN: 0737-4607

Keywords

Article
Publication date: 7 August 2023

Ambareen Beebeejaun and Pramod Kumar Bissessur

Shareholder activism is gaining popularity across the globe especially in today’s context where the option of giving up and selling shares to exit the company has become obsolete…

Abstract

Purpose

Shareholder activism is gaining popularity across the globe especially in today’s context where the option of giving up and selling shares to exit the company has become obsolete. Hence, the purpose of this research paper is two-fold, firstly, to investigate the extent to which the minority shareholders of companies listed on the Stock Exchange of Mauritius adopt and make use of the various tools of activism; and secondly, to compare the UK laws on shareholder activism with that of Mauritius.

Design/methodology/approach

To achieve these objectives, this study adopted the qualitative research method. Primary data was collected by conducting a survey on minority shareholders of Mauritian listed companies to figure out the extent to which they resort to activism tools, while secondary data was collected through a qualitative legal, document and content analysis to scrutinise regulatory provisions and existing literature on the researched topic.

Findings

The results show a moderate implementation level of shareholder activism by the minority investors in Mauritius although it was noted that minority shareholders are more likely to resort to the internal tools of activism rather than external methods. Further to the comparative study conducted, this research recommends a more active participation of the Mauritian regulatory bodies, amendments to the Mauritius Code of Corporate Governance and Mauritius Companies Act and the establishment of a commission responsible for overseeing the exercise of shareholders’ powers and promoting derivative lawsuits among minority shareholders.

Originality/value

Few researchers like Beebeejaun and Koobloll (2018) analysed shareholder activism through the lens of corporate governance with the view of providing recommendations to bring amendments in the Mauritian corporate law landscape. However, to the best of the authors’ knowledge, no research has yet been effectuated on the extent to which shareholder activism is practised by the minority investors in developing countries, for which this existing study aims at filling in the research gap.

Article
Publication date: 7 July 2023

Martin Haupt, Stefanie Wannow, Linda Marquardt, Jana Shanice Graubner and Alexander Haas

Through activism, brands participate in the sociopolitical controversies that shape society today. Based on social identity theory, this study aims to examine the moderating…

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Abstract

Purpose

Through activism, brands participate in the sociopolitical controversies that shape society today. Based on social identity theory, this study aims to examine the moderating effects of consumer–brand identification (CBI) and political ideology in explaining consumer responses to brand activism. Furthermore, the role of perceived marginalization that can arise in the case of consumer–brand disagreement is explored.

Design/methodology/approach

The hypothesized effects were tested in three experiments. Study 1 (n = 262) and Study 2 (n = 322) used a moderation analysis, which was supplemented by a mixed design analysis with repeated measures in Study 1. In Study 3 (n = 383), the mediating effect of perceived marginalization by the brand was tested using a moderated mediation model.

Findings

The results show that strong CBI as well as a conservative ideology buffer the negative effects of consumer–brand disagreement on brand attitude and word-of-mouth intentions. In the case of agreement with a brand’s stance, no direct or interactive effects of brand activism on consumer responses occur. Perceived marginalization by a brand mediates the effects of brand activism.

Originality/value

This study extends the “love is blind” versus “love becomes hate” debate to the realm of brand activism and finds evidence for the former effect. It also contributes to the research on political consumption by highlighting the role of political ideology as an important boundary condition for brand activism. Perceived marginalization is identified as a relevant risk for activist brands.

Details

Journal of Product & Brand Management, vol. 32 no. 8
Type: Research Article
ISSN: 1061-0421

Keywords

Article
Publication date: 19 September 2022

Pooja Sharma and Shikha Sachdeva

The genesis of “shareholder activism” in the USA may be traced back to several decades, but it only evolved in India at the start of the 21st century. This paper aims to explore…

Abstract

Purpose

The genesis of “shareholder activism” in the USA may be traced back to several decades, but it only evolved in India at the start of the 21st century. This paper aims to explore the concept of “shareholder activism” in the Indian context, in light of the New Companies Act, 2013. The act is envisioned as a precursor to invoking the intention of shareholders to confront managers. Further, it aims to look at the possibilities of using tools of shareholder activism to make companies aware of their concerns.

Design/methodology/approach

Authors explore the concept of shareholder activism with the help of textual analysis, using R. Then, the authors study the mediating effects of “shareholder’s intention towards activism” between the “regulatory mechanisms” and “the usage of various tools of activism”, using the partial least square approach.

Findings

Regulatory mechanisms, such as the Companies Act, 2013, enhance the shareholders’ power to sensitise companies towards various corporate governance issues. It also increases their intention towards shareholder activism, eventually leading to favourable opinion on using various tools of “activism” in their investee companies.

Practical implications

This study is a unique attempt to assess the minority shareholders’ potential to become active in their investee companies induced by changes in the rules and regulations of a country.

Originality/value

Shareholder activism in India has not been thoroughly explored thus far. This paper specifically studies the opinions of retail investors, who possibly could increase companies’ accountability towards their minority shareholders, especially in light of the New Companies Act, 2013.

Details

International Journal of Law and Management, vol. 64 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

Article
Publication date: 2 February 2023

Audra Diers-Lawson

In recent years, there has been a growth in research aimed at understanding the foundations of modern activist communication in media-rich and multi-platform environments. For…

Abstract

Purpose

In recent years, there has been a growth in research aimed at understanding the foundations of modern activist communication in media-rich and multi-platform environments. For example, Chon and Park's analysis of the American Black Lives Matter (BLM) movement built on Kim and Grunig's STOPS model. Yet, social and political injustice can exist for extended periods of time without successful movements emerging, so what leads people to demand social and political change through activism? This paper posits that crisis is trigger that motivates people to activism and evaluates that within the context of the Scottish independence movement.

Design/methodology/approach

The study is based on in-depth interviews with 26 advocates for Scottish independence, which yielded more than 32 h of data. Data were analysed using Strauss and Corbin's (1990) constant comparative method approach using open coding, axial coding and selective coding finding thematic saturation after only 10 interviews.

Findings

The study provides a clear extension of Chon and Park's model of activism by finding that crises are critical triggers for activism. Moreover, these findings also provide insights into not only the Scottish independence movement but more broadly the extension of traditional public relations and communication theory in multi-platform and multi-actor environments.

Originality/value

There are several contributions this piece makes. First, this paper extends activist, crisis and strategic communication research to more systematically consider the role that crisis plays in social and political advocacy. Second, this paper affords the opportunity to consider the challenges of communication, democracy and activism in the social media age. Finally, this paper supports an international view that discrimination and affective injustice experiences cut across many different kinds of identities and experiences instead of the traditionally considered ethnic, religious and gender-based experiences traditionally addressed.

Details

Corporate Communications: An International Journal, vol. 28 no. 4
Type: Research Article
ISSN: 1356-3289

Keywords

Article
Publication date: 19 October 2022

Cynthia S. Cycyota

The practice of corporate chief executive officer (CEOs) engaging in sociopolitical activism on issues both related and unrelated to their companies is gaining attention in the…

Abstract

Purpose

The practice of corporate chief executive officer (CEOs) engaging in sociopolitical activism on issues both related and unrelated to their companies is gaining attention in the popular press and among management scholars. The purpose of this paper is to explore the antecedents and motivations of CEO sociopolitical activism in a typology of influences internal and external to the CEO and to the organization. This study’s typology highlights the need for greater understanding of CEOs’ sociopolitical activism for the CEO as an individual actor and for the company they represent.

Design/methodology/approach

This study’s approach is to conceptually review the literature on CEO activism and to create a theoretic framework for future analysis of the antecedents and motivations and ramifications of CEOs’ sociopolitical activism for the CEO as an individual actor and for the company they represent. The author highlights four theories and seeks future application of these theories to the phenomena in a typology.

Findings

The typology highlights the application of management theories to various ramifications of CEO activism to four influences on CEO activities. Upper echelons theory helps explain the motivation of a CEO internally, whereas agency theory applies to CEO activism internal to the CEO and external to the organizational operations. External to the CEO, organizational culture theory supports responses internal to the organization, and stakeholder theory provides insight into responses external to the CEO and the organization.

Originality/value

This study provides conceptual support for the study of CEO activism and encourages future research on the topic.

Details

Society and Business Review, vol. 18 no. 3
Type: Research Article
ISSN: 1746-5680

Keywords

Article
Publication date: 14 March 2023

Brent Smith, Stephanie A. Tryce and Carol Ferrara

To measure the relationships between varieties of patriotism and fan reactions to anthem-linked athlete activism and to test the effects of teammate allyship.

Abstract

Purpose

To measure the relationships between varieties of patriotism and fan reactions to anthem-linked athlete activism and to test the effects of teammate allyship.

Design/methodology/approach

In this study of US sport fans (n = 519), the authors examine whether two varieties of patriotism—the affective “symbolic patriotism” and the cognitive “uncritical patriotism”—might explain fans' reactions (support v. opposition) to anthem-linked athlete activism. The authors also consider whether fans' acceptance of nonactivist teammate allyship moderates patriotism influences on those reactions.

Findings

Using partial least squares structural equation modelling (PLS-SEM), the authors posit and show that fans' reactions to athlete activism are driven more strongly by uncritical patriotism than by symbolic patriotism. The authors also show that fans' acceptance of nonactivist teammate allyship significantly moderate the strength and direction of fans' reactions to athlete activism.

Research limitations/implications

The authors contribute substantive, new knowledge into the sways of athlete activism, teammate allyship and fan patriotism within the sport world. By way of novel heterotrait-monotrait ratio of correlations, the authors show evidence of discriminant validities of symbolic patriotism and uncritical patriotism. Using PLS-SEM moderation tests, the authors also show that fans' acceptance of teammate allyship moderates the influences of these patriotism types differently.

Originality/value

Few empirical studies to date have investigated sport fans' reactions to athletes' displays of social activism (e.g. taking a knee to protest racism).

Details

International Journal of Sports Marketing and Sponsorship, vol. 24 no. 3
Type: Research Article
ISSN: 1464-6668

Keywords

Article
Publication date: 25 August 2022

Dinh Toan Nguyen, Dang Ha Anh Le, Linh Giang Truong, Ngan Giang Truong and Viet Vinh Vu

The study was conducted to investigate the impact of Generation Z's perceptions of brand activism on brand loyalty through the mediating role of brand attitude and brand trust.

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Abstract

Purpose

The study was conducted to investigate the impact of Generation Z's perceptions of brand activism on brand loyalty through the mediating role of brand attitude and brand trust.

Design/methodology/approach

The study first reviewed previous research and developed hypotheses related to the research objectives. Structural equation modelling (SEM) was conducted to test the hypotheses with the survey data of 1,133 individuals from Generation Z in Vietnam.

Findings

First, the findings indicated that: perceived argument quality, perceived authenticity, and perceived altruistic motives have a significant positive effect on brand attitude and brand trust. In addition, perceived self-interest motives have a significant positive effect on brand attitude. Brand trust has a significant positive effect on brand attitude. Finally, brand attitude and brand trust have a significant positive effect on brand loyalty. The study's empirical analysis carries implications for brand managers when implementing brand activism campaigns.

Originality/value

There is a paucity of research that investigates customers' perceptions of brand activism through perceived argument quality, perceived authenticity, perceived altruistic motives, and perceived self-interest motives and the influences of these on brand loyalty. The main contribution of this study is to fill this gap.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 35 no. 6
Type: Research Article
ISSN: 1355-5855

Keywords

Article
Publication date: 15 June 2020

Souha Siala Bouaziz, Ines Ben Amar Fakhfakh and Anis Jarboui

The purpose of this study is to investigate the impact of the relationship between shareholder activism and earnings management on the market performance of French companies.

Abstract

Purpose

The purpose of this study is to investigate the impact of the relationship between shareholder activism and earnings management on the market performance of French companies.

Design/methodology/approach

This study used 385 firm-year observations drawn from a sample of French companies belonging to the SBF 120 index from 2008 to 2012. Data was collected from annual reports of sample companies. To measure earnings management, this study used the model of Raman and Shahrur (2008). The relationship between shareholder activism, earnings management and market performance using the panel data regression model was empirically examined.

Findings

The results prove that shareholder activism, as indicated by shareholder proposals, has no impact on market performance. However, the existence of shareholder activism affects the market performance positively. In fact, a minimum of proposals proves that shareholder activism plays an appropriate and effective role in creating value. Thus, several activists would resort to “a private activism” which could be the best and the least expensive form. This form of activism is called “behind the scenes.” Findings also show that earnings management has a negative impact on market performance. As a matter of fact, these findings allow to conclude that the firm performance decreases whenever managers undertake to earnings management. Also, earnings management behavior is mainly opportunistic. Finally, the relationship between shareholder activism and earnings management has no impact on market performance. This result reveals that shareholder activism proves to be an ineffective mechanism that does not alter the accounting choices, particularly in relation to earnings management. This result shows the inability of active shareholders to define and implement strategies across their proposals, namely, “the lack of monitoring competence.”

Research limitations/implications

It is important in future research to evaluate the impact of behind the scenes interventions on corporate governance. Also, this paper gives a larger dimension to the effect of shareholder activism on the market performance in the specific context of earnings management, thus justifying the need to expand this study using other methodologies to deepen and better understand this relationship in this context.

Practical implications

The paper's evidence contributes to an understanding of corporate governance. The finding of this study will help in monitoring and controlling fraudulent earnings management practices that effect on market performance. Further, this study is important to investors, academics and policymakers, as it demonstrates that governance reforms that encourage firms to adopt better governance practices that reduce the likelihood of earnings management.

Originality/value

To the best of the author’s knowledge, this paper pioneers in focusing on the impact of the shareholder activism and earnings management on the market performance because previous studies put more emphasis on pair-wise relations (Shareholder activism-earnings management, earnings management-market performance and shareholder activism-market performance). This study provides empirical evidence on the effectiveness of the relationship between shareholder activism and earnings management on market performance.

Details

International Journal of Law and Management, vol. 62 no. 5
Type: Research Article
ISSN: 1754-243X

Keywords

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