W5 - Lecture Flashcards
What is CEO activism?
CEO’s public expression of a stance on some matter of current social or political debate.
(Hambrick & Wowak, 2021)
What is not considered CEO activism?
It should not be a company stance, but a personal one. It should not be focused on affecting the bottom line, but rather an expression of values.
(Chatterji & Toffel, 2018)
Why do CEOs speak up?
- To sustain corporate values
- Stakeholder capitalism
- Personal conviction
- Other motivations
(Chatterji & Toffel, 2018)
What tactics are employed in CEO activism?
- Raising awareness
- Leveraging economic power
- Making public statements
- Cancelling planned expansion and investment
- Donating to third-party groups
(Chatterji & Toffel, 2018)
True or False: CEO activism can attract goodwill for the company.
True
Anecdotal evidence suggests that CEO opinions can shape public views and policy.
What are some potential negative effects of CEO activism?
- Negative reactions
- Charges of hypocrisy
- Perception of clumsiness in messaging
(Chatterji & Toffel, 2018)
What rewards can come from CEO activism?
- Attract praise
- Improve CEO reputation
- Attract new customers
- Reach new audiences
- Attract media attention
(Chatterji & Toffel, 2018)
What should CEOs consider when choosing issues to address?
- Possibility of backlash
- Authenticity of message
- Knowledge of the topic
- Timing of the issue
- Individual vs. collective approach
- Inside support
Best practices in CEO activism.
Fill in the blank: CEO activism should be a _______ stance, not a company stance.
[personal]
What is the focus of non-market strategy compared to CEO activism?
Non-market strategy focuses on the bottom line, while CEO activism focuses on the issue itself.
What is the significance of stakeholder capitalism in CEO activism?
It reflects the belief that companies have a purpose beyond profits.
Referenced in Fortune500 2019 letter.
What is a double-edged sword in the context of CEO activism?
It can stimulate both preference and boycott among consumers based on their political affiliations.
