Corporate Activism and the Global Public Sphere (Week 12 pre class blog)
Corporate activism appears to now
be the rule rather than the exception. Large corporations which often become
symbols of culture such as Starbucks and McDonalds for the United States and
IKEA for Sweden are increasingly engaging in social missions that decades ago
were considered the realm of activists. Indeed only a few decades ago these
same large corporations were typified by socially detached CEOs increasingly
determined to perfect supply chain mechanisms at all costs. What I think
changed is the emerging global public sphere which strongly influenced their
consumers. If there is something corporations care more about than flawless supply
chains, it is the patronage of their consumers.
Some of the most outspoken CEOs,
now considered social entrepreneurs, include Howard Schulz of Starbucks and
Kevin Thompson of IBM although the two have very different styles. Schulz is
publicly seen as a CEO activist taking a stance on issues far related to
someone’s morning coffee. He has drawn broad criticism for this from
conservatives who tend to feel attacked by his opinions. In contrast Thompson
of IBM takes a more conservative and methodical role to social community engagement
by placing high-potential employees in NGOs and governments of developing
nations to provide services they could typically not afford. This has been
hailed by his colleagues as a success and been praised by media outlets.
Although Thompson certainly falls short of Schulz’s activist spirit, these two
examples demonstrate how large corporations are being influenced by a public
sphere.
Millennials are increasingly being
considered an activist generation. Similar to their predecessors of the 1960s,
they are demonstrating that they are very capable at organizing and with
technology at their fingertips, they are a powerful force. One of the unique characteristics
for this generation is its connection between business and social issues. Consumers
today want to visibly see that the businesses they frequent are taking active
roles in local and global communities. This new expectations has corporations
searching for ways to develop initiatives to demonstrate their own resolve to
satisfy socially-minded consumers. While some corporations stop at entrepreneurship,
others like Starbucks insist on making social issues a hallmark of their brand.
This seems like a risky move as consumers begin to associate politics with a
business and potentially become disaffected.
The global public sphere is
recognizable by the networks which it facilitates. Certainly these networks
have influenced large corporations to such a degree that they have convinced them
that the key to success is to engage in previously shunned stance taking and,
for some, even social advocacy.
This is an excellent point, Austen, that consumer conscience can drive corporations to cater to social issues. I think the biggest push we've seen in this direction is businesses adopting eco-friendly procedures and products and advertising as "paperless" or so. Thus, making strides towards more environmentally conscience actions throughout.
ReplyDeleteThat was one of the ones that stood out most to me as well. I also think that MNEs taking stances on issues like marriage equality, equal pay for women, and gun rights is popular as well. I think we could even suggest that these MNEs are very likely to adopt policies for "hot button" issues in order to gain please a certain demographic.
ReplyDelete