The role of heterogeneity in corporate sociopolitical activism

with Brayden King and Elizabeth Pontikes

The practice of corporate sociopolitical activism (CSA) encompasses complex and often contested dynamics. This paper focuses on the role and impact of heterogeneity in two areas of CSA: (1) firm action and (2) employee partisan leanings. Using data on employee satisfaction, we examine how firms’ participation in CSA affects their ratings as an employer. We use a split-sample analysis to examine firms within different partisan clusters, and we differentiate firm action by degree of controversiality. Findings show that while employees in predominantly liberal firms respond positively to their firm taking a less controversial stand, employees in “politically diverse” firms respond negatively, especially for more controversial CSA. The paper concludes with a discussion of implications and needs for future research.