Corporate Activism: The ultimate stage of CSR?

Over the past ten years, large-scale companies have endorsed a new kind of social and environmental stand, by publicly speaking out about polarizing issues. Climate action, racism, gender equality, and the rights of the LGBTQ+ community have become hot topics on companies’ agendas, and firms - especially in the United States - are not afraid to show their position, to make statements, and to take part in public events. This phenomenon has been denominated as Corporate Activism. The objective of this thesis is to demystify the concept of Corporate Activism and to bring about a European perspective. The study considers the context in which Corporations are evolving today and their level of engagement under the umbrella term of Corporate Social Responsibility. Ultimately, it aims at situating Corporate Activism in the field of CSR. The main conclusion of this thesis reveals a context of radical uncertainty leading the way for a decade of action. This context is altering government-corporate relationships and blurring the role separation between economy, politics, and social creating a conducive environment for Corporate Activism. The study forms an understanding of Corporate Activism from a European perspective. It differs from the American perspective on the basis of the full integration of the engagement internally and the relation of the values defended with the core activity. The research uncovers how Corporate Activism, despite its best attempts to create positive change, sometimes legitimizes minimal action and stands for conservative positions. As it is about taking public stands, it also generates the risk of falling back to a promotional stunt of marketing CSR. The study essentially shows that Corporate Activism is the ultimate stage of CSR. If corporations are to make a genuine impact, they need to address social and/or environmental issues radically and publicly with the aim of creating societal change. The corporate activists need to be exemplary firms that have undergone a shift in mindset and are doing business in an inclusive, respectful, and sustainable manner. Most importantly, activist corporations need to listen to all their stakeholders, engage their employees in the company purpose and proactively inquire for consumer feedback. Corporate Activist firms are opinion leaders showing the way for suppliers and all the actors in the industry to challenge the norms and transform their own business model in a more sustainable manner.