IDEAS home Printed from https://ideas.repec.org/a/vrs/gfkmir/v13y2021i2p32-37n5.html
   My bibliography  Save this article

Boycott or Buycott: The Aftermath of Corporate Activism

Author

Listed:
  • Warren Nooshin L.

    (Assistant Professor of Marketing, Eller College of Management, University of Arizona, USA)

Abstract

Some stakeholders, notably investors, might be worried that debatable activism interferes with the goal of making profits. Therefore, they might react negatively to corporate activism. On average, there was a half percent dip in stock prices as companies engaged in activism. However, if the activism was aligned with a company´s stakeholders’ values, stock prices increased. The effect for customer and legislators was stronger than for employees. Misalignment with all three groups accounted for the highest loss. Brand activism aligned with consumers political ideologies, further increased sales, and the positive effects were persistent, over time. To be successful, companies should carefully select their engagements to avoid being punished. When deciding whether to engage in controversial activism, they should have a closer look at key stakeholders, such as customers, regulators, and employees.

Suggested Citation

  • Warren Nooshin L., 2021. "Boycott or Buycott: The Aftermath of Corporate Activism," NIM Marketing Intelligence Review, Sciendo, vol. 13(2), pages 32-37, November.
  • Handle: RePEc:vrs:gfkmir:v:13:y:2021:i:2:p:32-37:n:5
    DOI: 10.2478/nimmir-2021-0014
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/nimmir-2021-0014
    Download Restriction: no

    File URL: https://libkey.io/10.2478/nimmir-2021-0014?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:gfkmir:v:13:y:2021:i:2:p:32-37:n:5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.