W5 - Literature Flashcards
What is CEO activism?
The phenomenon where corporate leaders take public stands on political and social issues unrelated to their companies’ bottom lines.
Name three recent controversies that have drawn CEOs into public debates.
- Laws affecting transgender people in North Carolina
- Police shootings in Missouri
- Executive orders on immigration
What historical perspective is given regarding corporations’ roles in politics?
Corporations have long lobbied, contributed to candidates, and funded political action committees to shape public policies.
What does the ‘Michael Jordan dictum’ refer to?
The idea that choosing sides on divisive issues can hurt sales, suggesting executives should avoid taking political stances.
What has led to the rise of CEO activism according to the text?
Increasing political partisanship, social upheaval, and the expectation for CEOs to advocate for broader issues.
What are two types of tactics employed by CEO activists?
- Raising awareness
- Leveraging economic power
How do CEOs typically raise awareness on social issues?
By making public statements, often through media and social platforms, to express their positions on various issues.
What collective action did CEOs take before the UN climate-change negotiations in Paris?
Fourteen major food company CEOs cosigned an open letter urging government leaders to create a strong climate accord.
Give an example of leveraging economic power by CEOs against legislation.
Bill Oesterle, CEO of Angie’s List, canceled its planned expansion in Indiana in response to the Religious Freedom Restoration Act.
What is a potential consequence of CEO activism mentioned in the text?
It can lead to charges of hypocrisy if companies continue operating in ways that contradict their public stances.
What is one risk associated with CEO activism?
Affiliating with political leaders or causes can provoke backlash from consumers and stakeholders.
What did research from Weber Shandwick and KRC Research find about Millennials’ views on CEO activism?
Large percentages believe CEOs have a responsibility to speak out on political and social issues, affecting their purchasing decisions.
What did Tim Cook’s activism regarding Indiana’s religious freedom bill influence?
It increased purchasing intent for Apple products among supporters of same-sex marriage without alienating opponents.
What should CEOs consider when deciding what issues to weigh in on?
The potential social impact of their advocacy and how their statements will be received in a politically polarized environment.
What is the significance of silence in the context of CEO activism?
Silence may be perceived as tacit approval of controversial actions or statements made by political leaders.
Fill in the blank: CEO activism can generate goodwill for the company but need not alienate those who _______.
[disagree with the CEO’s stance]
What is one example of a backlash faced by a CEO due to their activism?
Under Armour’s CEO Kevin Plank faced criticism after praising Trump, leading to a boycott hashtag.
What is the CEO Activist’s Playbook?
A guide for leaders on whether and how to speak out on social and political issues based on empirical research.
True or False: CEO activism has always been a common practice among corporate leaders.
False
What is the effect of political affiliation on consumer perception of CEO activism?
Consumers view CEO activism through the lens of their party affiliation, impacting their perceptions positively or negatively.
Which issues are more likely to improve a CEO’s brand image among both Democrats and Republicans?
Less divisive issues such as parental leave and STEM education.
What did the Global Strategy Group study find about public stances on economic vs. social issues?
Both Democrats and Republicans agreed it was fitting for companies to take public stances on economic issues, but there was less consensus on social issues.
Fill in the blank: Immigration is a _______ issue for CEOs due to varied public reactions.
[complex]
What factors contributed to the different public reactions faced by Hamdi Ulukaya and Mohamad Ali regarding immigration?
Ulukaya focused on moral obligations for refugees, while Ali emphasized immigrants as job creators.
Why is authenticity important in CEO activism?
The message must resonate with both the leader and the business to be effective.
When is a CEO activist’s chance of blocking a policy typically better?
Before legislation is enacted rather than after.
What was the significance of Frazier’s resignation from Trump’s economic council?
It earned significant positive media coverage and set him apart from subsequent resignations.
True or False: Collective action by CEOs can mitigate risks associated with individual backlash.
True
What should CEOs do to align internal stakeholders with their activism?
Consult with board members and key stakeholders before taking public stands.
What is the purpose of a rapid response team in CEO activism?
To prepare for potential backlash and ensure coordinated messaging.
Fill in the blank: Companies often lack good data on the _______ beliefs of their customers.
[political]
What can influence the effectiveness of boycotts against companies like Target?
Availability of easy alternatives to their products or services.
How should CEOs gauge the impact of their activism?
By establishing metrics such as media mentions, public opinion polls, and policy shifts.
What should CEOs expect regarding questions from stakeholders about political issues?
They should expect to be asked about their stance on hot-button topics.
What is a recommended approach for CEOs engaging in activism?
Select issues carefully and measure results effectively.
What is CEO activism?
The practice of CEOs taking public stands on controversial social or political issues.
What trend did researchers notice regarding CEOs’ involvement in social issues?
CEOs began speaking out on societal issues not directly related to their company’s bottom line.
What was the old conventional wisdom regarding CEOs and social issues?
CEOs should remain neutral and avoid controversial political issues.
What demographic shift is influencing CEO activism?
The rise of millennials in the workforce who want to align their values with their company.
What are some examples of values that employees expect their CEOs to represent?
- Equality * Diversity
In what way should companies consult employees regarding their values?
Through town halls or focus groups for complex issues.
What do many companies have in place for natural disasters or power failures?
Contingency plans
These plans allow companies to act quickly in emergencies.
What is increasing the demands on CEOs regarding social issues?
To speak out rapidly on issues
This reflects a shift in expectations for corporate leadership.
What does the term ‘switching costs’ refer to in the context of consumer behavior?
The difficulty of changing brands or services
Example: Switching from Chick-fil-A to another restaurant is easier than switching from Apple.
What factor can make it commercially sensible for companies to take a position on controversial issues?
Intensity of feelings on either side of the issue
Companies might benefit from appealing to those with stronger feelings.
What is a key consideration for CEOs when deciding to speak out on issues?
Connecting with employees at all levels
Understanding what drives new talent is crucial.
What should employees do to influence their CEO to speak on an issue?
Learn about the issue from diverse sources
Understanding multiple perspectives is essential.
What is one way to advocate for an issue within a company?
Building coalitions with affinity groups or concerned employees
Collaboration can strengthen advocacy efforts.
What is a challenge for CEOs when choosing which issues to speak out on?
The need to be discriminant about topics
CEOs face pressure to prioritize issues that align with corporate values.
What is CEO activism?
Corporate leaders speaking out on social and environmental policy issues not directly related to their company’s core business
Distinct from nonmarket strategy and traditional corporate social responsibility.
What topics are commonly associated with CEO activism?
- Climate change
- LGBTQ rights
- Race relations
- Gender equality
Examples include public stands taken by CEOs on various social issues.
What were the findings regarding the influence of CEO activism on climate change attitudes?
No statistically significant impacts were found from treatments involving CEOs discussing climate change
This suggests that unnamed groups may not be as effective as identifiable individuals.
What differentiates CEO activism from nonmarket strategy?
- Individual locus of action
- Public nature of activism
- Broader audience including employees and consumers
CEO activism communicates personal values rather than just corporate strategy.
What critiques do CEO activism face?
- Limited social impact if not aligned with core business
- Suspicions of being attempts to enhance brand equity
These critiques challenge the authenticity of CEO activism.
Fill in the blank: CEO activism is aimed at communicating a CEO’s ______ to important stakeholders.
[values]
True or False: CEO activism exclusively aims to drive profits for the company.
False
CEO activism focuses on broader social issues rather than just corporate profits.
What is CEO activism?
CEO activism refers to corporate leaders speaking out on social or political issues that are largely unrelated to their core businesses.
How does CEO activism differ from strategic CSR?
CEO activism is distinct from nonmarket strategy and strategic CSR, focusing on personal advocacy rather than formal corporate social responsibility initiatives.
What is a key rationale behind CEO activism?
CEO activism can be rooted in ethical objections rather than immediate business imperatives.
How can CEO activism affect a company’s performance?
CEO activism could communicate values to consumers and employees, potentially forging a strong bond with stakeholders who agree with the position.
True or False: CEO activism is always directly related to a company’s core business.
False
What is a potential consequence of CEO activism according to the study?
It can promote or erode purchasing intent depending on the audience.
What is the main finding regarding CEO activism and purchasing intent?
CEO activism can backfire by eroding purchasing intent among those who disagree with the CEO’s position.
This was specifically indicated in the context of Apple products associated with CEO Tim Cook.
True or False: CEO activism is equally effective across all audience segments.
False
CEO activism influences some audiences more than others.
What does CEO activism risk doing to consumers?
Alienating consumers who disagree with the CEO’s public stance
What is the primary effect of CEO activism?
Signaling which side of a public debate CEOs and their companies are on
True or False: CEO activism can sometimes be less persuasive than unattributed statements.
True
What factors might influence the impact of CEO activism?
- Attribution to individual vs. group CEOs
- Societal issues being examined
What role can CEO activism play in the policy lifecycle?
- Initiation
- Early adoption
- Diffusion
- Standardization
Fill in the blank: CEO activism is typically occurring in the _______ and _______ stages.
[early adoption], [diffusion]
What can the tone of media coverage impact regarding CEO activism?
How CEO activism is received
True or False: The benefits of CEO activism always outweigh the costs.
False
What might influence the purchasing behavior of consumers in relation to CEO activism?
Elasticity of demand for the company’s products
Fill in the blank: CEO ideology influences _______ as an element of corporate opportunity structure.
Corporate social responsibility
What does the term ‘greenwash’ refer to?
Corporate environmental disclosure under threat of audit
What does the term ‘corporate social advocacy’ refer to?
Communication that impacts corporate financial performance
What does the term ‘CEO ambivalence’ refer to as discussed by Plambeck and Weber (2009)?
The conflicting feelings and indecision of CEOs in response to strategic issues
This concept examines how ambivalence can affect decision-making processes at the executive level.
