Over the last decade, a rising trend of corporations publicly acting on social and political issues has come to the fore. The issues and methods have both varied widely—from immigration to abortion, and from advertisements to boycotts. This introduces an interesting puzzle in the realm of strategy research: Where does this kind of corporate action fit in our understanding of nonmarket strategy? And why are companies taking this kind of action? As a collective work, this dissertation makes the case that the rise in corporate sociopolitical involvement (CSPI) stems from both the standardization of corporate social responsibility (CSR) and the expectation of corporate accountability (exemplified through private politics), pressurized by the increase in political polarization. This dissertation is comprised of three projects. The first delves into the broader evolution of CSPI and its increasing prevalence as a practice and trend over the last 25 years. Findings demonstrate a drastic increase of CSPI in the latter five years; as well as an expansion of rhetoric, focal audiences, and issues addressed by firms. I establish a comprehensive set of criteria for CSPI and distinguish what qualifies as corporate activism within this area of corporate action. The second project examines a specific event that prodded a large public response from companies on a controversial social issue; with a focus on how to discern sincerity amidst heterogeneity in firm responses. The study begins with a qualitative analysis of firm responses in order to establish differentiation in rhetoric and actions, and the findings of this analysis provided measures of sincerity. I establish a definition of sincerity in the context of corporate prosocial action, and then use the measures found in the qualitative analysis to explore which types of firms are more likely to signal sincerity through quantitative regressions. Results show that these firms are more likely to be first-movers, consumer-facing, liberal-leaning, and previously involved in activism. The final chapter looks at how controversiality and collective values influence employee responses after a firm’s participation in CSPI. Findings show that firms respond to sociopolitical events with varying degrees of controversiality, which can lead to a negative response for firms with an ideologically-heterogenous employee base. However, firms with ideologically-unified employees find a long-lasting benefit for action when the stance of the firm aligns with their values. By establishing a comprehensive definition and perspective of CSPI, this dissertation lays a strong foundation for future research to build upon. My work contributes to our understanding of how corporations interact with social and political concerns in the public realm. Additionally, it provides insight into the different perspectives of a firm’s role in society, and the expansion of corporate boundaries beyond the bottom-line. In turn, these contributions help us to better understand the power, reach, and potential of corporations as they seek to broaden their societal presence and influence.

Creator

• McKean, Anna Eileen

DOI

• https://doi.org/10.21985/n2-3f1y-pm46

Subject

• Management
• Sociology

Language

• en

Alternate Identifier

• http://dissertations.umi.com/northwestern:16374
• etdadmin_upload_947265

Keyword

• corporate sociopolitical involvement
• social movements
• corporate social responsibility
• nonmarket strategy
• business strategy
• corporate political activity

Date created

• 2022-01-01

Resource type

• Dissertation

Rights statement

• In Copyright