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Private Environmental Activism and the Selection and Response of Firm Targets

Author

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  • Michael J. Lenox
  • Charles E. Eesley

Abstract

"Environmental activists are increasingly resorting to private strategies such as boycotts and protests focused on changing individual firms' behavior. In this paper, we examine activists' use of such "private politics" to engender firm compliance with activist objectives. We begin by developing a simple theoretical model of an activist campaign from which we develop a set of empirical hypotheses based on a set of observable features of firms. We test our hypotheses using a unique dataset of environmental activist campaigns against firms in the United States from 1988 to 2003. This paper fills an important need in the literature as one of the first empirical attempts to examine the private political strategies of activists and has important implications for the burgeoning literatures on industry self-regulation and the nonmarket strategies of firms." Copyright (c) 2009, The Author(s) Journal Compilation (c) 2009 Wiley Periodicals, Inc..

Suggested Citation

  • Michael J. Lenox & Charles E. Eesley, 2009. "Private Environmental Activism and the Selection and Response of Firm Targets," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 18(1), pages 45-73, March.
  • Handle: RePEc:bla:jemstr:v:18:y:2009:i:1:p:45-73
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    Citations

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    Cited by:

    1. Jean-Philippe BONARDI & Olivier CADOT & Lionel COTTIER, 2016. "Extremists into Truth-tellers: Information Aggregation under Asymmetric Preferences," Working Papers P149, FERDI.
    2. Shewmake, Sharon & Okrent, Abigail & Thabrew, Lanka & Vandenbergh, Michael, 2015. "Predicting consumer demand responses to carbon labels," Ecological Economics, Elsevier, vol. 119(C), pages 168-180.
    3. Lucea Rafael & Doh Jonathan, 2012. "International strategy for the nonmarket context: stakeholders, issues, networks, and geography," Business and Politics, De Gruyter, vol. 14(3), pages 1-30, October.
    4. repec:eee:jbrese:v:80:y:2017:i:c:p:247-256 is not listed on IDEAS
    5. repec:bla:stratm:v:37:y:2016:i:12:p:2425-2440 is not listed on IDEAS
    6. repec:bla:stratm:v:38:y:2017:i:13:p:2682-2703 is not listed on IDEAS
    7. Michael W. Toffel & Jodi L. Short & Melissa Ouellet, 2012. "Codes in Context: How States, Markets, and Civil Society Shape Adherence to Global Labor Standards," Harvard Business School Working Papers 13-045, Harvard Business School, revised Sep 2014.
    8. Trina Hamilton, 2013. "Beyond Market Signals: Negotiating Marketplace Politics and Corporate Responsibilities," Economic Geography, Clark University, vol. 89(3), pages 285-307, July.
    9. repec:kap:jbuset:v:144:y:2017:i:2:d:10.1007_s10551-015-2816-9 is not listed on IDEAS
    10. Gupta, Sonam & Innes, Robert, 2014. "Private politics and environmental management," Journal of Environmental Economics and Management, Elsevier, vol. 68(2), pages 319-339.
    11. Christopher Marquis & Michael W. Toffel & Yanhua Zhou, 2011. "Scrutiny, Norms, and Selective Disclosure: A Global Study of Greenwashing," Harvard Business School Working Papers 11-115, Harvard Business School, revised Jul 2015.
    12. Baron, David P., 2011. "Credence attributes, voluntary organizations, and social pressure," Journal of Public Economics, Elsevier, vol. 95(11), pages 1331-1338.
    13. repec:bla:stratm:v:38:y:2017:i:11:p:2266-2284 is not listed on IDEAS
    14. Cohen, Mark A. & Vandenbergh, Michael P., 2012. "The potential role of carbon labeling in a green economy," Energy Economics, Elsevier, vol. 34(S1), pages 53-63.
    15. Omar Al Serhan & Elias Boukrami, 2015. "Mapping studies on consumer boycotting in international marketing," Transnational Marketing Journal, Transnational Press London, UK, vol. 3(2), pages 130-151, October.
    16. Richard A. Hunt & Lauren L. Ortiz-Hunt, 2017. "Deinstitutionalization through Business Model Evolution: Women Entrepreneurs in the Middle East and North Africa," Working Papers 2017-06, Colorado School of Mines, Division of Economics and Business.

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