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

2. 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)

3. 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

4. Outcomes

5. 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

6. 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

7. Perceptions of Corporate IntentDV 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)

8. 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)

9. Implications

10. 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%)

11. Questions?