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1 – 10 of 270The 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.
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Holger Joerg Schmidt, Nicholas Ind, Francisco Guzmán and Eric Kennedy
This paper aims to shed light on the emerging position of companies taking stances on sociopolitical issues and the impact this has on consumers.
Abstract
Purpose
This paper aims to shed light on the emerging position of companies taking stances on sociopolitical issues and the impact this has on consumers.
Design/methodology/approach
The paper uses focus groups, interviews and consumer experiments in various countries, to provide insights as to why brands are taking sociopolitical stances.
Findings
Consumers expect brands to take a stance on sociopolitical issues. However, to be credible, a stance needs to be rooted in a long-term commitment that aligns with the brand’s strategy and values. Perceived authenticity is key.
Research limitations/implications
Future studies should aim at broader generalizability and should address various industries.
Practical implications
Differentiating a brand through a sociopolitical stance requires a strategic approach. Brand managers need to identify which issues they should support, how to engage with them and the risks and opportunities involved.
Originality/value
While the impact of brands adopting a sociopolitical stance has been discussed in the mainstream media, there has been a lack of empirical evidence to support the arguments. The results of the four studies discussed in the paper provide insights and demonstrate the brand-related opportunities and risks of taking a sociopolitical stance.
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Yvette M. Sterbenk, Jamie Ward, Regina Luttrell and Summer Shelton
This study explores the framing of messages delivered by 105 Fortune 500 companies across 21 sectors in June 2020 in response to three social justice issues that took prominence…
Abstract
Purpose
This study explores the framing of messages delivered by 105 Fortune 500 companies across 21 sectors in June 2020 in response to three social justice issues that took prominence that month in the United States: racial inequity, immigration laws and LGBTQ rights.
Design/methodology/approach
Researchers compiled a list of the top five companies in each sector on the 2020 Fortune 500 list, with a resulting list of N = 21 sectors and N = 105 companies. A database of corporate statements was compiled along with a comprehensive list of recurring themes. Quantitative framing analysis was used to examine each corporate statement.
Findings
Seventy percent of the companies examined made statements about the issue of racial injustice, 58% about LGBTQ issues and only 6% about immigration policy. Coders identified the most frequent message type coded on each social justice issue: racial inequity –“Working Together”; immigration policy – “Celebration”; LGBTQ rights – “Celebration.”
Research limitations/implications
This study relied on a quantitative analysis of themes, but it did not analyze the specific language or media used. Further examination of rhetorical choices could uncover additional meanings in the messages.
Practical implications
Companies are increasingly called upon to speak out on controversial issues. This can be challenging for communicators who are deciding how to respond. This study sheds light on the common frames used in corporate statements.
Originality/value
No studies to date have adopted a content analysis approach to assess the content of corporate activist statements. Examining the messages is important because, as more companies become increasingly vocal about social issues, stakeholders utilize this information to judge the sincerity of both the company and the message.
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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…
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.
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Richard L. Flight and Kesha Coker
In today’s world of heightened sociopolitical issues, consumer political ideologies may determine the nature of consumer-brand relationships. Consumers seek out self-affirming…
Abstract
Purpose
In today’s world of heightened sociopolitical issues, consumer political ideologies may determine the nature of consumer-brand relationships. Consumers seek out self-affirming agents (e.g. friends, family and community) to bolster their beliefs, which help develop their sense of self. Increasingly, they also choose brands that fit into and support their worldview alongside other agents. Yet, little is known about the role of consumer political ideologies in shaping consumer behavior and consumer-brand relationships. This study aims to address this gap by exploring alternative political ideologies for market segmentation and brand attachment analysis.
Design/methodology/approach
This research uses an online survey for data collection that generated 819 usable responses. Respondents answered questions about their political orientations and then rated their attachment to 66 unique brands. This research uses cluster analysis to establish market segments using libertarian, authoritarian, conservative and liberal political ideologies, then between-group analyzes are used to determine significant differences in brand attachment.
Findings
Analysis reveals three clusters of consumers termed, conservative-libertarian, liberal-authoritarian and moderates. In 53% of the brands evaluated, the market segments’ degree of brand attachment differed significantly. Meanwhile, moderates demonstrate an overall stronger average brand attachment than the other market segments.
Research limitations/implications
Findings suggest that shared political ideology provides a viable means to segment a market adding to the psychographic tools already available to brand managers. Findings also suggest that consumer political ideologies help inform brand attachment levels.
Practical implications
Given the ability to segment a market on political ideology, it is found that different segments demonstrate varying levels of brand attachment. In practical terms, using political ideology as a segmenting tool helps define a market segment and has a differentiable effect on attraction toward the brand. Thus, political ideology may be considered as brands position themselves and engage in corporate sociopolitical activism.
Originality/value
This research provides unique insights into consumer political ideology as an alternative segmentation tool and its role in understanding brand attachment.
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Francisco Guzmán, Fayez Ahmad and Ross W. Johnson
Business organizations are evermore expected to behave conscientiously, but a lack of clarity remains regarding this strategy for business-to-business (B2B) brands. This paper…
Abstract
Purpose
Business organizations are evermore expected to behave conscientiously, but a lack of clarity remains regarding this strategy for business-to-business (B2B) brands. This paper aims to develop and validate a B2B brand conscientiousness model that identifies what factors are driving this approach.
Design/methodology/approach
The research model is validated through a three-stage study that collects insights from high-level executives, mid-level managers and employees in B2B firms. Whereas the first two exploratory stages follow a qualitative approach to identify what factors motivate B2B firms to be conscientious and develop a model, the third stage empirically tests the proposed model through structural equation modeling.
Findings
The results suggest that brand conscientiousness is viewed as an important strategy by B2B stakeholders. Whereas perceived risk discourages, external and internal stakeholder expectations and a firm’s financial commitment to a cause encourage, brands to pursue a conscientious approach. Furthermore, a B2B conscientious strategy must be perceived as authentic. Long-term commitment to the cause, strategic alignment of brand values with the cause and a congruent delivery of the brand’s promise are the drivers of this perceived authenticity.
Originality/value
This paper contributes to the emerging knowledge on B2B conscientious brands by confirming the importance of this approach in a B2B context, identifying the factors that B2B stakeholders – executives, managers and employees – believe are driving it and highlighting the importance and identifying the factors that drive its perceived authenticity.
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Jan Klostermann, Chris Hydock and Reinhold Decker
In recent years, brands have increasingly engaged in corporate political advocacy (CPA; also termed brand activism or corporate sociopolitical activity) by taking positions on…
Abstract
Purpose
In recent years, brands have increasingly engaged in corporate political advocacy (CPA; also termed brand activism or corporate sociopolitical activity) by taking positions on polarizing sociopolitical issues. Recent experimental research suggests that consumers respond to CPA based on its alignment with their own values, and that it typically induces an overall negative response. This study aims to provide additional insights by exploring consumer brand perceptions following CPA.
Design/methodology/approach
An event study of 106 CPA events and weekly consumer brand perception data was conducted. A regression model was used to investigate the moderating effects of CPA effort, concurrence and the strength of the online protests evoked by the CPA.
Findings
The results show that CPA had a negative effect on consumers’ brand perceptions and that the effect was stronger for customers relative to non-customers. The negative effect was attenuated by CPA concurrence and amplified by effort. Additionally, online protests were driven by the CPA effort and had a strong negative effect on brand perception. Online protests were stronger in the past, and, in turn, the negative effects of CPA on brand perceptions have slightly weakened in recent years.
Originality/value
This study contributes to the existing literature by highlighting the role of online protests following CPA and distinguishing consumer and customer responses. This study also provides converging evidence of the moderating effects of effort and concurrence identified in previous studies.
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Salvador G. Villegas and Pamela Monaghan-Geernaert
This case offers the students to see the impact business ethics concepts, including corporate social responsibility, ethical obligation, ethical strategy, alienation, corporate…
Abstract
Theoretical basis
This case offers the students to see the impact business ethics concepts, including corporate social responsibility, ethical obligation, ethical strategy, alienation, corporate activism, sociopolitical activism, symbolism, transparency, integrity, decoupled organization, opportunism, moral muteness or moral exclusion, etc. Through the student’s own ethical sensitivity, they can then make an informed decision grounded in fundamental ethical theories such as Utilitarianism, Kantianism, Ethics of Care, Virtue Theory, Confucianism, etc.
Research methodology
Data for this case has been gathered entirely from publicly available secondary sources, including online resources, mainstream media reports, biased (opinion-based) media outlets, social media statements from all stakeholder groups (students, business, university) and meeting minutes from campus organizations. None of the named individuals nor entities, in this case, have ever been contacted by the authors.
Case overview/synopsis
In Fall 2020, Boise State University contracted a locally owned and operated coffee shop to open a location on-campus. The shop owner was engaged to a police officer who had been permanently injured in an altercation with a dangerous fugitive. For his sacrifice, this police officer was awarded the Medal of Honor from the City of Boise. To support her fiancé, the coffee shop owner displayed a Thin Blue Line flag on the front door of her off-campus location. Students heard of this display and began to voice their objections through administrative and social media channels. The business countered back at claims that they supported racism and ultimately asked to be released from their contract with the university. They closed their on-campus business, having operated the location for less than two months. Media representation of this case created a vocal response both from those who support the business’ use of this imagery and those who support the student’s decision to boycott this business on ethical grounds.
Complexity academic level
Business ethics: 300–400 level; Business strategy: 300–400 level.
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Jung Eun Kwon, Jongdae Kim and Sang-Hoon Kim
This study aims to comprehend luxury brands' corporate social responsibility (CSR) strategies. In addition to facing a demand for new CSR strategies (consumer-centric CSR)…
Abstract
Purpose
This study aims to comprehend luxury brands' corporate social responsibility (CSR) strategies. In addition to facing a demand for new CSR strategies (consumer-centric CSR), changes in CSR discourse among luxury brands are observed. This study examines how CSR-related and luxury-related agendas relate in the news media, especially concerning the difference between traditional and new luxury brands.
Design/methodology/approach
A total of 117,171 fashion-related news articles were collected from January 2016 to December 2020. The word2vec method was used to determine the relationship between CSR and luxury agendas.
Findings
The results indicate that company-centric CSR is more prominent with traditional luxury brands, while consumer-centric CSR is more relevant for new luxury brands. In addition, specific CSR attributes and luxury-related attributes are associated with media discourse, which means that CSR and luxury are compatible.
Originality/value
Studies on CSR in the luxury industry are not extensive in the literature. This study addresses this gap through a unique framework that combines agenda-setting theory and existing CSR literature and applies them to the luxury industry. Specifically, this study captures the development of each construct (company-centric CSR to consumer-centric CSR and traditional luxury to new luxury) and identifies the specific relationships between them. This result provides a novel view of the luxury industry indicating that it has evolved to encompass CSR-related values. The empirical results also offer practical implications for luxury marketing.
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