1. bookVolume 13 (2021): Issue 2 (November 2021)
    Brand Activism
Journal Details
License
Format
Journal
First Published
30 May 2019
Publication timeframe
2 times per year
Languages
English
access type Open Access

Boycott or Buycott: The Aftermath of Corporate Activism

Published Online: 22 Oct 2021
Page range: 32 - 37
Journal Details
License
Format
Journal
First Published
30 May 2019
Publication timeframe
2 times per year
Languages
English
Abstract

Some stakeholders, notably investors, might be worried that debatable activism interferes with the goal of making profits. Therefore, they might react negatively to corporate activism. On average, there was a half percent dip in stock prices as companies engaged in activism. However, if the activism was aligned with a company´s stakeholders’ values, stock prices increased. The effect for customer and legislators was stronger than for employees. Misalignment with all three groups accounted for the highest loss. Brand activism aligned with consumers political ideologies, further increased sales, and the positive effects were persistent, over time.

To be successful, companies should carefully select their engagements to avoid being punished. When deciding whether to engage in controversial activism, they should have a closer look at key stakeholders, such as customers, regulators, and employees.

Keywords

Bhagwat, Y.; Warren, N. L.; Beck, J. T.; & Watson, G. F. (2020): “Corporate Sociopolitical Activism and Firm Value”, Journal of Marketing, Vol. 84(5), 1–21. https://doi.org/10.1177/002224292093700010.1177/0022242920937000 Search in Google Scholar

Recommended articles from Trend MD

Plan your remote conference with Sciendo