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Risky business: Taking a stand on social issues

Author

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  • Weinzimmer, Laurence G.
  • Esken, Candace A.

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.

Suggested Citation

  • Weinzimmer, Laurence G. & Esken, Candace A., 2016. "Risky business: Taking a stand on social issues," Business Horizons, Elsevier, vol. 59(3), pages 331-337.
    • Handle: RePEc:eee:bushor:v:59:y:2016:i:3:p:331-337
    DOI: 10.1016/j.bushor.2016.01.007
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    References listed on IDEAS

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    1. Manuel Branco & Lúcia Rodrigues, 2006. "Corporate Social Responsibility and Resource-Based Perspectives," Journal of Business Ethics, Springer, vol. 69(2), pages 111-132, December.
    2. François Maon & Adam Lindgreen & Valérie Swaen, 2009. "Designing and Implementing Corporate Social Responsibility: An Integrative Framework Grounded in Theory and Practice," Journal of Business Ethics, Springer, vol. 87(1), pages 71-89, April.
    3. Page, Graham & Fearn, Helen, 2005. "Corporate Reputation: What Do Consumers Really Care About?," Journal of Advertising Research, Cambridge University Press, vol. 45(3), pages 305-313, September.
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    Cited by:

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    2. Mishra, Paresh & Schmidt, Gordon B., 2018. "How can leaders of multinational organizations be ethical by contributing to corporate social responsibility initiatives? Guidelines and pitfalls for leaders trying to do good," Business Horizons, Elsevier, vol. 61(6), pages 833-843.
    3. Rosalynn Vasquez, 2022. "CSR, CSA, or CPA? Examining Corporate Climate Change Communication Strategies, Motives, and Effects on Consumer Outcomes," Sustainability, MDPI, vol. 14(6), pages 1-16, March.
    4. Veda Fatmy & John Kihn & Jukka Sihvonen & Sami Vähämaa, 2022. "Does lesbian and gay friendliness pay off? A new look at LGBT policies and firm performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(1), pages 213-242, March.
    5. Anna Żelazna & Matylda Bojar & Ewa Bojar, 2020. "Corporate Social Responsibility towards the Environment in Lublin Region, Poland: A Comparative Study of 2009 and 2019," Sustainability, MDPI, vol. 12(11), pages 1-13, June.
    6. Eglė Stonkutė & Jolita Vveinhardt & Włodzimierz Sroka, 2018. "Training the CSR Sensitive Mind-Set: The Integration of CSR into the Training of Business Administration Professionals," Sustainability, MDPI, vol. 10(3), pages 1-14, March.

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