Corporate Socio-Political Involvement: A Reflection of Whose Preferences?

Executive Summary

Firms have recently increased their support or opposition of a wide-array of politically-charged social issues, with no direct performance motivation. These “socio-political issues” are vastly different from corporate social responsibility and corporate political activities, as they are divisive, emotionally-charged, and institutionally contested social issues.

In this article, we explore “socio-political issues” and develop a distinct model, relying on multiple theoretical perspectives – agency theory and a push versus pull perspective of stakeholder theory, thus providing complementary or at times competing explanations for firm involvement on such controversial socio-political issues.

We also explore the contexts (or facilitating institutional environments) that enable management to get involved in socio-political issues.

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Publication Date

2016/09/13

Publication

Academy of Management Perspectives

Author(s)

Academy of Management Perspectives

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