This project explores interactions between activists and corporations. Understanding these interactions is important, as activists increasingly and successfully pressure corporations to adopt more
socially and environmentally sustainable practices. Activists publicly and privately contest the sustainability of target firms’ existing practices and call for them to adopt more desirable alternatives, threatening the firms’ relationships with stakeholders and their access to resources. Some of the world’s largest corporations, including Nike, Timberland, The Home Depot, Lowe’s, and McDonald’s have all agreed to change their practices when pressured by much smaller activist organizations, including People for the Ethical Treatment of Animals, The Rainforest Action Network, and Greenpeace.
The work comprising this project has looked to explain why and how activists pressure firms to change their practices, when and how firms respond to such pressure, and how such efforts benefit or harm these actors. Recently, my colleagues and I have developed an overarching theory that conceptualizes struggles between activists and firms as a novel and unexpected form of rivalry, one that differs from traditional conceptions of rivalry and merits more careful attention from business scholars and practitioners. Of particular interest and importance is how firms’ managers make sense of, and consequently deal with, activists’ pressure on their firms.
Three fascinating insights have emerged from the research that we have conducted on the dynamic between activists and firms. First, what activists say about firms plays a much more fundamental role in catalyzing practice change than what activists do to those firms, qualifying the assumption that activists drive firms to change through various forms of protest. Second, managers’ perceptions of the effects of activist’ efforts more fundamentally shape their firms’ responses than the actual effects of such efforts, which helps to explain why firms change even though activists rarely impact their operations in meaningful ways. Third, and finally, activists’ efforts to make firms’ practices more sustainable enable the activists to bolster their status in among target firms and peer organizations alike, increasing their influence and access to resources. Embedded in this finding is the recognition that some measure of selfishness rests at the heart of activists’ seemingly selfless endeavors. ... [more]