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How Social Activism Impacts Corporate Political Clout
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How Social Activism Impacts Corporate Political Clout

Knowledge at Wharton·Knowledge at Wharton Staff·about 1 month ago
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Social activism is at the heart of a robust democracy and an integral part of capitalism. When a business is in the spotlight for any perceived wrongdoing, citizens can choose to boycott that company’s goods or services. With enough momentum, a boycott can exert sufficient pressure to bring about changes in business practices or regulations. That kind of social activism takes on special significance during an election year, when politicians are careful to distance themselves from companies seen as less than honest. As a result, corporations can lose their political influence. In her paper, “ Blacklisted Businesses: Social Activist Challenges and the Disruption of Corporate Political Activity ,” which is forthcoming in the journal, Administrative Science Quarterly , Wharton management professor Mary-Hunter McDonnell examines the delicate balancing act among corporations, politicians and social activists. The paper was co-authored with University of Texas at Austin professor Timothy Werner.…

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