The Activist Company: Examining a Company’s Pursuit of Societal Change Through Corporate Activism Using an Institutional Theoretical Lens

Abstract

Companies are more frequently taking public stands on often controversial social, political, economic, and environmental issues. Despite the importance of the topic, research on understanding the role of companies in societal change through activism is scarce. Using institutional theory, this article defines corporate activism as a company’s willingness to take a stand on social, political, economic, and environmental issues to create societal change by influencing the attitudes and behaviors of actors in its institutional environment. This framework conceptualizes corporate activism as a response to barriers that hinder the solution of an issue. These barriers stem from institutional actors’ attitudes and behaviors toward the issue, and corporate activism can address these barriers through influence and change strategies that can target the institutional environment “top-down” or “bottom-up.” This framework further investigates how the identity orientation of the company facilitates corporate activism. This research has important implications for managers, policy makers, and any other agents that aim to facilitate social change.