Corporate sociopolitical activism (CSA) refers to a firm's public demonstration of support or opposition to a partisan sociopolitical issue. CSA has become increasingly prominent in recent years, as firms have taken stances on issues such as climate change, racial justice, reproductive rights, gun control, immigration, LGBTQ+ rights, and gender equality.
Firms may engage in CSA to appeal to purpose-driven ideals, as well as contribute to more strategic motives, in line with consumers' existing preferences for moral purchasing options. Indeed, a recent study found that 64% of global consumers choose to buy or boycott a given brand on the basis of its political leanings, a result suggesting the increasing importance of ethical consumerism practices.
In addition, the 2020 CMO Survey revealed that a growing proportion of marketing leaders find it acceptable to make changes to products and services in response to political issues (47.2%), have executives speak out on political issues (33.3%), and use marketing communications to speak out on political issues (27.8%). Further, brands engaged in an unprecedented level of activist behavior in response to consumers protesting racial injustice in 2020.
Firms have historically strayed from vocalizing stances on controversial sociopolitical matters, with the understanding that doing so could sever certain stakeholder relationships. However, modern cultural shifts have precipitated a “hyper-partisan” climate, leading to demand for firms to exercise purpose-driven efforts in the marketplace. As stated by Richard Edelman, chief executive officer (CEO) of Edelman, “Brands are now being pushed to go beyond their classic business interests to become advocates. It is a new relationship between a company and consumer, where a purchase is premised on the brand’s willingness to live its values, act with purpose, and, if necessary, make the leap into activism.”
Definition
CSA is a unique form of cause-related firm behavior defined broadly by two distinct characteristics: publicity and partisanship. Specifically, CSA involves a firm's public support of or opposition to a partisan sociopolitical issue. Such issues are described as “salient unresolved social matters on which societal and institutional opinion is split, thus potentially engendering acrimonious debate among groups.” Notably, while the controversy surrounding a given issue can change or be resolved, a firm's efforts may be considered CSA to the extent that they reflect engagement with an issue defined as partisan at a given point in time, politics, and culture. Further, the term “brand activism” has been used to describe similar efforts by individual brands (i.e., owned by firms) to vocalize public stances on sociopolitical issues; brand activism can, thus, be considered CSA delivered through a brand's voice.
Conceptual distinctions
CSA is comparable but distinct from two related firm activities: corporate social responsibility (CSR) and corporate political activity (CPA).
Corporate social responsibility
CSR involves firms’ contributions to widely favored societal goals (e.g., community resources, education, donations to disease prevention research) via philanthropic or charitable efforts, CSA pertains to a firm's engagement in causes for which there is no universally acceptable “correct” response. Further, CSA may involve a lower level of monetary investment (e.g., a press release, an open letter) compared to CSR; however, there is greater risk associated with CSA, due in part to the potential for backlash from various stakeholders.
Corporate political activity
CSA is distinct from CPA—a firm's efforts (e.g., campaign contributions, lobbying, donations to political action committees) to sway political processes and gain policy-related market advantages. While both types of firm activities reflect involvement in the political process, they differ in the extent to which they are publicized. CSA is often utilized as a public demonstration of a firm's core values and principles. Conversely, CPA is an often-discreet activity that is typically made public only through “accidental disclosure”.
Examples
Firms have increasingly taken activist stances on sociopolitical issues across a variety of domains.
Racial justice
Firms have spoken out about racial justice in a number of ways (e.g., affirming support for the Black Lives Matter movement, donating a portion of profits to civil rights organizations).