Risky business: Taking a stand on social issues

Laurence G. Weinzimmer and Candace A. Esken

Business Horizons, 2016, vol. 59, issue 3, 331-337

Abstract: When company executives take a stand on social issues, the repercussions can be significant. Not only does the company run the risk of alienating employees, but taking a stand on a controversial issue can impact the company's image and ultimately consumer purchasing behaviors. However, research on corporate social responsibility generally supports the notion that when companies get involved in societal issues, it can positively influence bottom-line financial performance. This article evaluates the advantages and disadvantages of taking a corporate stand on sensitive social issues and suggests guidelines that leaders should consider to increase the probability of success. Specifically, we found that oftentimes it is not the stand a leader takes but rather how that leader takes that stand. Moreover, we encourage business leaders to consider the delicate balance between fiduciary responsibility and social activism, to use a strategic approach, and to understand the legal repercussions before taking a stand on a social issue.

Keywords: Corporate social responsibility; Consumer behavior; Social issues; Barilla; Boycotts; Brand reputation (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0007681316000082
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:bushor:v:59:y:2016:i:3:p:331-337

DOI: 10.1016/j.bushor.2016.01.007

Access Statistics for this article

Business Horizons is currently edited by C. M. Dalton

More articles in Business Horizons from Elsevier
Bibliographic data for series maintained by Catherine Liu ().