Deconstructing corporate activism: a consumer approach

Abstract

Defending social and political positions other than those that a company’s clients might support has always been an avoidable risk. However, this practice, called ‘corporate activism,’ has gradually been integrated into the strategies of organizations. The object of this work is thus to understand the antecedents of corporate activism from the consumer’s point of view. To understand this, we carry out structural equation modeling (SEM) based on a sample of 1,521 consumers. The results demonstrate that: (i) institutional credibility, corporate credibility, and authenticity act as antecedents of corporate activism; (ii) corporate credibility has a positive influence on corporate activism, while institutional credibility has a negative impact. These findings represent an interesting and novel contribution that helps to understand how these types of high-risk strategies should be adopted. The application of these results could enable companies to determine the conditions that favor a positive evaluation of corporative activism by consumers and avoid the use of such strategies in less favorable situations.