The Risk of Inauthenticity for Corporate Activism Melissa D. Dodd, Ph.D., APR Assistant Professor, Ad-PR Nicholson School of Communication @mellydodd

Corporate Activism Conceptualized theoretical underpinning: Strategic issues management (Dodd & Supa, 2015, 2014) Legitimacy – “generalized perception that actions of an entity are desirable, proper, or appropriate within some socially constructed system of norms, values, beliefs, and definitions (Suchman, 1995)

Examples PGA - Trump and immigration Same-sex marriage (100s) Amazon.com, eBay, NASCAR, Target, Walmart – Confederate flag Delta – Big game trophy hunting Starbucks – Race relations Target – Transgender bathrooms Pfizer – Climate change McDonalds, IKEA – Minimum wage Chipotle - GMOs

Outcomes

Method N = 225, undergraduate student sample Experimental survey method Random exposure to 4 (company stance) x 4 (issues) Starbucks, Immigration Nike, Immigration Target, Transgender bathroom Pfizer, climate change

Results DV M (Low Auth) (High Auth) F Sig. Partial Eta Squared Homophily 2.87 (.73) 3.56 (.85) 38.64 p<.000 0.15 Brand Credibility 3.18 (.56) 3.75 (.68) 43.29 0.17 Brand Trust 3.29 (.60) 3.93 (.64) 55.45 0.20 WOM Intent 3.39 (.78) 4.08 (.72) 30.19 .12 Purchase Intent 3.47 (.72) 4.07 (.72) 35.28 .14

Perceptions of Corporate Intent DV M (Low Auth) (High Auth) To get media attention 3.28 (.90) 3.09 (1.11) To positively influence the CEO’s reputation 3.53 (.80) 3.40 (1.10) To positively influence the company’s reputation 3.72 (.76) 3.93 (.89) To sell more products/services 3.43 (.91) 3.26 (1.11) To be open and honest about how the issue aligns with the company’s values (p<.000, n2 = .14) 3.59 (.80) 4.19 (.63) To be open and honest about how the issue aligns with the CEO’s values (p<.000, n2 = .09) 3.52 (.73) 4.01 (.80)

DV M (Low Auth) (High Auth) To avoid possible boycotting of the company 3.12 (.95) 3.10 (1.21) To leverage the company’s influence and financial power for good 3.48 (.73) 3.59 (1.03) To do what the company perceives as right for society (p<.000, n2 = .16) 3.68 (.71) 4.29 (.65) To speak up on behalf of all the company’s employees (p<.000, n2 = .14) 3.24 (.83) 3.97 (.90) To speak up on behalf of all the company’s customers (p<.000, n2 = .12) To hide or correct problems. 2.99 (.84) 2.97 (1.15) To be more competitive 3.08 (.87) 3.09 (1.20) To attract and retain the best employees 3.24 (.73) 3.38 (1.10)

Implications

What is the responsibility of business to society with regard to social-political issues? “59 percent believe that it is the role of government to regulate, yet 80 percent say that it’s the responsibility of business to lead and solve problems. Specifically, eight in 10 individuals believe that a company can take specific actions that both increase profits and improve the economic and social conditions in the community where it operates” (Edelman Trust Barometer, 2016, p. 10) An expectation that companies will engage in corporate activism (Global Strategy Group, 2016) “Corporations have the power to influence social change” (88%) “Corporations should take action to address important issues facing society” (78%)

Questions? Melissa.dodd@ucf.edu