Corporate sociopolitical activism

Corporate sociopolitical activism (CSA) refers to a firm's public demonstration of support or opposition to a partisan sociopolitical issue.^[1][2][3][4] CSA has become increasingly prominent in recent years, as firms have taken stances on issues such as climate change, racial justice, reproductive rights, gun control, immigration, LGBTQ+ rights, and gender equality.^[5]

Woke capitalism, woke capital and stakeholder capitalism^[6] are terms used by some commentators to refer to a form of marketing, advertising and corporate structures that pertains to sociopolitical standpoints tied to social justice and activist causes.^[7] The term was coined by columnist Ross Douthat in "The Rise of Woke Capital", an article written for and published in The New York Times in 2018.^[8][9]

Firms may engage in CSA to appeal to purpose-driven ideals, as well as contribute to more strategic motives, in line with consumers' existing preferences for moral purchasing options. Indeed, a recent study found that 64% of global consumers choose to buy or boycott a given brand on the basis of its political leanings, a result suggesting the increasing importance of ethical consumerism practices.^[10]

In addition, the 2020 CMO Survey revealed that a growing proportion of marketing leaders find it acceptable to make changes to products and services in response to political issues (47.2%), have executives speak out on political issues (33.3%), and use marketing communications to speak out on political issues (27.8%).^[4] Further, brands engaged in an unprecedented level of activist behavior in response to consumers protesting racial injustice in 2020.^[11]

Firms have historically strayed from vocalizing stances on controversial sociopolitical matters, with the understanding that doing so could sever certain stakeholder relationships.^[2] However, modern cultural shifts have precipitated a “hyper-partisan” climate,^[12] leading to demand for firms to exercise purpose-driven efforts in the marketplace.^[13] As stated by Richard Edelman, chief executive officer (CEO) of Edelman, “Brands are now being pushed to go beyond their classic business interests to become advocates. It is a new relationship between a company and consumer, where a purchase is premised on the brand’s willingness to live its values, act with purpose, and, if necessary, make the leap into activism.^[10]”