Corporate sociopolitical activism


Corporate sociopolitical activism refers to a firm's public demonstration of support or opposition to a partisan sociopolitical issue. CSA has become increasingly prominent in the 2010s and 2020s, as firms have taken stances on issues such as climate change, racial justice, reproductive rights, gun control, immigration, LGBTQ rights, and gender equality.
Several terms, such as woke capitalism, woke capital, and stakeholder capitalism, are 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. 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.
CSA is comparable but distinct from two related firm activities: corporate social responsibility and corporate political activity. 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.
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, have executives speak out on political issues, and use marketing communications to speak out on political issues. Furthermore, 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 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. Furthermore, the term "brand activism" has been used to describe similar efforts by individual brands to vocalize public stances on sociopolitical issues; brand activism can, thus, be considered CSA delivered through a brand's voice.

Conceptual distinctions

Corporate social responsibility

CSR involves firms' contributions to widely favored societal goals via philanthropic or charitable efforts, CSA pertains to a firm's engagement in causes for which there is no universally acceptable correct response. Furthermore, CSA may involve a lower level of monetary investment 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 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. Among the most prominent examples of racial justice CSA came in September 2018 when Nike announced football player Colin Kaepernick as the spokesperson for its thirtieth anniversary advertisement campaign. Notably, Kaepernick stirred national debate in 2016 by kneeling during the National Anthem in protest of racial inequality and police brutality in the United States. In Nike's campaign, Kaepernick said, "Believe in something, even if it means sacrificing everything." News agencies characterized this tagline as implicit support for Kaepernick's platform of racial justice advocacy.
While Nike's decision initially sparked consumer backlash, as well as a dip in stock price, the firm's value reached an all-time high only a week later. According to a Quinnipiac University poll, much of the persistent consumer support for the ad came from consumers between 18 and 34, two-thirds of whom approved of Nike's actions. This case has been considered a critical turning point in the emergence of CSA as a prominent brand practice. Additional examples of racial justice CSA include the following:
  • Home Depot CEO Craig Meaner said in a statement, "We are all confronting deep pain and anguish over the senseless killing of George Floyd, Ahmaud Arbery, and other unarmed Black men and women in our country. We cannot ignore that their deaths are part of a pattern of racism and reflect the harsh reality that as a nation we are much too far from fulfilling the promise of equal justice for all."
  • Netflix promoted a new Black Lives Matter collection to U.S. subscribers, featuring a number of television and movie titles about racial injustice and the experience of Black Americans.
  • Walmart announced that it will donate $100 million over five years to create a new center for racial equity.

    LGBTQ rights

Firms have utilized both internal and external resources to take a stand on issues facing the LGBTQ community. For instance, many firms act as corporate sponsors of Pride parades internationally and assist in LGBTQ community-building efforts. Published since 2002, the Human Rights Campaign has utilized its Corporate Equality Index to measure the extent to which American businesses treat equitably their LGBTQ employees, customers, and investors. Criteria used to assess companies include, among others, a written policy of non-discrimination based on sexual orientation, gender identity, and gender expression; appropriate and respectful advertising to the LGBTQ community; and transgender-inclusive health benefits.
There has been an increase in the number of firms with a perfect CEI rating every year since the tool's inception. Such firms frequently release statements and press releases to express satisfaction at having been recognized for their diversity and inclusivity efforts. Notably, many brands have also released Pride-related merchandise in recent years to signal support for LGBTQ rights, as well as position themselves as advocates for LGBTQ consumers.
  • Converse released a collection of Pride-inspired low- and high-top sneakers featuring a rainbow flag with a brown and black stripe dedicated to queer people of color. Also included in this collection was a pair of sneakers adorned with the pink, light blue, and white colors of the transgender flag.
  • Sephora's "We Love Pride" make-up collection featured a metallic red lipstick called "Love Is Love". The brand donated a portion of sales to a variety of LGBTQ charities.
  • Fossil released its second annual Pride Watch, featuring a bezel with all the colors of the rainbow flag. U.S. sales benefitted the Hetrick-Martin Institute, the nation's oldest and largest LGBTQ youth organization.

    Climate change

While sustainable business practices have long been a component of firms' CSR activities, some companies have taken an activist stance in recent years to address climate change more explicitly. For example, the brand Patagonia has established itself as a chief market-based environmental justice advocate. Its November 2011 "Don't Buy This Jacket" spot in the New York Times served as both an advertisement for the firm's merchandise and an imperative for consumers to reduce their carbon footprint. The ad's message leveraged an anti-consumerist ideology to encourage the purchase of long-lasting outdoor apparel and deter the proliferation of the fast fashion industry. Most large companies across the world have made commitments to climate change. For example:
  • Amazon announced in 2019 that it would transition to 80% renewable energy usage by 2024, and then to zero emissions by 2030. The firm's CEO Jeff Bezos also launched the Bezos Earth Fund in February 2020, committing $10 billion to assist in "any effort that offers a real possibility to help preserve and protect the natural world".
  • Google announced in September 2020 that it is investing in manufacturing regions to create new carbon-free energy and help cities reduce their emissions.

    Gun control

A number of major firearms sellers have modified their gun sales policies, particularly as a response to mass shootings taking place in the U.S. Two such notable examples are the following:
  • Ed Stack, CEO of Dick's Sporting Goods, announced in February 2018 that stores would end the sales of high-capacity magazines, as well as sales of guns to persons under the age of 21. The firm also took legal action by urging Congress to ban assault-style weapons, raise the minimum age to purchase a gun to 21, and outlaw sales of high-capacity magazines and bump stocks. The firm cited the Parkland high school shooting in Parkland, Florida as an event that directly influenced its decisions.
  • Walmart CEO Doug McMillon released a statement in 2019 containing news of the firm's plans to discontinue sales of short-barrel rifle ammunition, handgun ammunition, and handguns. This statement also requested that customers no longer openly carry firearms into Walmart or Sam's Club stores, including those in states in which "open carry" practices are permitted. The firm cited the 2019 El Paso Walmart shooting, which took place in a Walmart store, as a critical incident shaping its decisions.