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Beyond Business: Understanding the Foundations and Practices of Corporate Activism

In: Entrepreneurship in the Fourth Sector

Author

Listed:
  • Carlota López Aza

    (Complutense University of Madrid)

  • Teresa Pintado Blanco

    (Complutense University of Madrid)

  • Joaquín Sánchez Herrera

    (Complutense University of Madrid)

Abstract

The objective of this research is to examine the emerging phenomenon of corporate activism and its relationship with the fourth sector. This chapter therefore contains a detailed review of the concepts and theories that allow for a better understanding of the issues around activism. More specifically, it describes the ecosystem in which the companies performing activist practices operate. They perform these as a result of the strategic decisions made by their businesses in different parts of the world. All of this has the aim of meeting the financial targets as well as promoting social change, demonstrating the commitment of these practices to the mission of the for-benefit organization. To do this, we analyzed a sample of 50 activism-based business communication strategies between 2008 and 2019, representing the most important initiatives in this area. These communication campaigns have been carried out by companies that meet the criteria associated with the fourth sector. A descriptive analysis is proposed in which the time sequence of the activism initiatives is studied, before later describing the most significant characteristics of the organizations studied (type of activism, business evolution, sector analysis, and degree of controversy). The results show when and under what conditions the corporate activism actions have been carried out. As a result, the study allows us to understand and discuss the implications of this new form of relationship between companies and society.

Suggested Citation

  • Carlota López Aza & Teresa Pintado Blanco & Joaquín Sánchez Herrera, 2021. "Beyond Business: Understanding the Foundations and Practices of Corporate Activism," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: María Isabel Sánchez-Hernández & Luísa Carvalho & Conceição Rego & Maria Raquel Lucas & Adriana Noro (ed.), Entrepreneurship in the Fourth Sector, edition 1, pages 331-356, Springer.
    • Handle: RePEc:spr:seschp:978-3-030-68390-0_16
    DOI: 10.1007/978-3-030-68390-0_16
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