Corporate sociopolitical activism

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Corporate sociopolitical activism (CSA) refers to a firm's public demonstration of support or opposition to a partisan sociopolitical issue.[1][2][3][4] 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.[5]

Woke capitalism, woke capital and stakeholder capitalism[6] are terms used by some commentators to refer to a form of marketing, advertising and corporate structures that pertains to sociopolitical standpoints tied to social justice and activist causes.[7] The term was coined by columnist Ross Douthat in "The Rise of Woke Capital", an article written for and published in The New York Times in 2018.[8][9]

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. 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.[10]

A 2020 survey of CMOs revealed that a growing proportion of marketing leaders find it acceptable to make changes to products and services in response to political issues (47%), have executives speak out on political issues (33%), and use marketing communications to speak out on political issues (28%).[4] Further, brands engaged in an unprecedented level of activist behavior in response to consumers protesting racial injustice in 2020.[11]

Firms have historically strayed from vocalizing stances on controversial sociopolitical matters, with the understanding that doing so could sever certain stakeholder relationships.[2] However, modern cultural shifts have precipitated a “hyper-partisan” climate,[12] leading to demand for firms to exercise purpose-driven efforts in the marketplace.[13] 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."[10]

  1. ^ Lin, Tom C.W. (2022). The Capitalist and the Activist. Berrett-Koehler Publishers. pp. 21–23. ISBN 978-1-5230-9255-0. OCLC 1285525992.
  2. ^ a b Bhagwat, Yashoda; Warren, Nooshin L.; Beck, Joshua T.; George F. Watson, I. V. (June 29, 2020). "Corporate Sociopolitical Activism and Firm Value". Journal of Marketing. 84 (5): 1–21. doi:10.1177/0022242920937000. hdl:10150/643357. S2CID 220987121.
  3. ^ Mukherjee, Sourjo; Althuizen, Niek (March 13, 2020). "Brand activism: Does courting controversy help or hurt a brand?". International Journal of Research in Marketing. 37 (4): 772–788. doi:10.1016/j.ijresmar.2020.02.008. ISSN 0167-8116. S2CID 216296266.
  4. ^ a b Moorman, Christine (September 15, 2020). "Commentary: Brand Activism in a Political World". Journal of Public Policy & Marketing. 39 (4): 388–392. doi:10.1177/0743915620945260. S2CID 221749372.
  5. ^ Kotler, Philip; Sarkar, Christian (January 9, 2017). "Finally, Brand Activism!". The Marketing Journal. Double Loop Marketing LLC. Retrieved November 19, 2020.
  6. ^ Hutton, Will (January 30, 2022). "'Woke' capitalism is the new villain of the right. It's also the only way forward". The Guardian.
  7. ^ "Woke, not broke". Bartleby. The Economist. Vol. 430, no. 9127. January 26, 2019. p. 65. ISSN 0013-0613.
  8. ^ Cite error: The named reference Lewis 2020 was invoked but never defined (see the help page).
  9. ^ Douthat, Ross (February 28, 2018). "The Rise of Woke Capital". The New York Times.
  10. ^ a b "Two-Thirds of Consumers Worldwide Now Buy on Beliefs". Edelman. October 2, 2018. Retrieved November 18, 2020.
  11. ^ "How brands and agencies responded to racial injustice in the first month following George Floyd's death". adage.com. July 7, 2020. Retrieved November 18, 2020.
  12. ^ Druckman, James N.; Peterson, Erik; Slothuus, Rune (2013). "How Elite Partisan Polarization Affects Public Opinion Formation". The American Political Science Review. 107 (1): 57–79. doi:10.1017/S0003055412000500. ISSN 0003-0554. JSTOR 23357757. S2CID 8282836.
  13. ^ O'Hara, Mary Emily (July 15, 2020). "Consumers Want Brands to Hire More People of Color". adage.com. Retrieved November 18, 2020.