Skip to main content
SpringerLink
Log in

Management Responses to Social Activism in an Era of Corporate Responsibility: A Case Study

  • Published:
Journal of Business Ethics Aims and scope Submit manuscript

Abstract

Social activism against companies has evolved in the 50 years since Rachel Carson first put the US chemical industry under pressure to halt the indiscriminate use of the chemical DDT. Many more companies have come under the spotlight of activist attention as the agenda social activists address has expanded, provoked in part by the internationalization of business. During the past fifteen years, companies have begun to formulate corporate responsibility (CR) policies and appointed management teams dedicated to CR, resulting in a change in the way companies interact with social activists. This paper presents findings from a longitudinal case study of managerial responses to social activism targeted at a company with relatively well-advanced CR practices and reputation. The case describes the unfolding of the internal processes over an 8-year period, including the role played by different managers and the tensions in the decision-making processes. The findings emphasize how values and beliefs in the company interact with economic arguments and how those are mediated through functions and relationships in the company and beyond. The paper shows how critical managers’ understanding of the motivations of activists behind the campaign is in shaping their actions. It reveals the paradoxical outcomes that can result from social activism at the level of the firm, the industry, and the field.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3

Similar content being viewed by others

Notes

  1. All the data and documents are available upon request.

  2. For more information, see Heineken International website http://www.heinekeninternational.com, accessed on October 31, 2011.

  3. Deng, June 2004 (Belgium), Cambodia Daily October 2005, May 2006, Development Weekly June 2006 and November 2006, Phnom Penh Post August 2005, (Cambodia), Straight Times March 2004 (Singapore), The Amsterdam Times March 2004, NRC Handelsblad February 2003 & February 2004, Trouw May 2003 (The Netherlands).

  4. Internal Heineken documentation. Received November 23, 2011.

  5. http://www.beergirls.org, http://www.ethicalbeer.com, http://www.bsicambodia.com, http://www.angkorwatngo.com, http://www.Siemreapngo.com, http://portal.psychology.uoguelph.ca/research/lubek/cambodia/index.html.

Abbreviations

BPs:

Beer promoters

BSIC:

Beer selling industry Cambodia

CR:

Corporate responsibility

GHA:

Global health affairs

HQs:

Headquarters

HR:

Human resources

JV:

Joint venture

NGO:

Non-governmental organization

References

  • Aguinis, H., & Glavas, A. (2012). What we know and don’t know about corporate social responsibility: A review and research agenda. Journal of Management, 38, 932–968.

    Google Scholar 

  • Beer, S. (1984). The viable system model: Its provenance, development, methodology and pathology. The Journal of the Operational Research Society, 35(1), 7–25.

    Google Scholar 

  • Cargill. (2010). Cargill’s position on Sinar Mas (PT-Smart). Press release from Cargill November 2, 2010.

  • Carson, R. L. (1962). Silent spring. New York: Mariner Books. ISBN 0-618-25305-x.

  • Constance, D., & Bonanno, A. (2000). Regulating the global fisheries: The world wildlife fund, Unilever, and the marine stewardship council. Agriculture and Human Values, 17(2), 125–139.

    Article  Google Scholar 

  • Davis-Walling, P., & Batterman, S. A. (1997). Environmental reporting by the fortune 50 firms. Environmental Management, 21(6), 865–875.

    Article  Google Scholar 

  • Delmas, M., & Montiel, I. (2008). The diffusion of voluntary international management standards—responsible care, ISO 9000 and ISO 14001 in the chemical industry. Policy Studies Journal, 36(1), 65–93.

    Article  Google Scholar 

  • Den Hond, F., & de Bakker, F. G. A. (2007). Ideologically motivated activism: How activist groups influence corporate social change activities. Academy of Management Review, 32(3), 901–924.

    Article  Google Scholar 

  • Doh, J. P., & Guay, T. R. (2006). Corporate social responsibility, public policy, and NGO activism in Europe and the United States: An institutional-stakeholder perspective. Journal of Management Studies, 43(1), 47–73.

    Article  Google Scholar 

  • Egels-Zandén, N., & Hyllman, P. (2006). Exploring the effects of union–NGO relationships on corporate responsibility: The case of the Swedish clean clothes campaign. Journal of Business Ethics, 64(3), 303–316.

    Article  Google Scholar 

  • Eisenhardt, K. M. (1989). Building theories from case study research. Academy of Management Review, 14(4), 532–550.

    Google Scholar 

  • Environmental Defense Fund. (2012). Retrieved August 1, from http://www.edf.org/about/our-mission-and-history.

  • Fombrun, C. J. (2005). A world of reputation research, analysis and thinking—building corporate reputation through CSR initiatives: Evolving standards. Corporate Reputation Review, 8(1), 7–12.

    Article  Google Scholar 

  • Greenpeace. (2008). Retrieved April 1, from http://www.youtube.com/watch?v=odI7pQFyjso.

  • Gorbach, P. M., Sopheab, H., Vonthanak, S., Vun, M. C., Wantha, S. S., & Leng H. B. (2003). Behavioral Sentinel Survey (BSS) V: Sexual behavior among urban sentinel groups, Cambodia 2001. In G. Morineau (Ed.), Retrieved April 15, 2010, from http://www.fhi.org/NR/rdonlyres/ezz6pqawk56o4l3qdseu5oth7ppiuzuy2rhymabr4a6me6pbf2hz6g3yvsxfcgqqhgwhxhk3fkcnhh/BSS5cambodiaenhv.pdf.

  • Guay, T., Doh, J. P., & Sinclair, G. (2004). Non-governmental organizations, shareholder activism and socially responsible investments: Ethical, strategic, and governance implications. Journal of Business Ethics, 52(1), 125–139.

    Article  Google Scholar 

  • Halme, M., Roome, N., & Dobers, P. (2009). Corporate responsibility: Reflections on context and consequences. Scandinavian Journal of Management, 25(1), 1–9.

    Article  Google Scholar 

  • Hammersley, M., & Atkinson, P. (1997). Ethnography: Principles in practice (2nd ed.). New York: Routledge.

    Google Scholar 

  • Indochina. (2011). BSIC project monitoring H1—2011 Final Report. Provided by the BSIC upon request.

  • Jenkins, R. (2001, July 1). Corporate codes of conduct: Self-regulation in a global economy, United Nations Research Institute for Social Development Report. Retrieved April 1, 2011, from http://www.unrisd.org/unrisd/website/document.nsf/0/e3b3e78bab9a886f80256b5e00344278/$FILE/jenkins.pdf.

  • King, A., & Lennox, M. (2000). Industry self-regulation without sanctions: The chemical industries responsible care program. The Academy of Management Journal, 43(4), 698–716.

    Article  Google Scholar 

  • King, B. G., & Pearce, N. A. (2010). The contentiousness of markets: Politics, social movements, and institutional change in markets. Annual Review of Sociology, 36, 249–267.

    Article  Google Scholar 

  • Klinker, C. (2005). SBS: A Cambodian women’s health initiative endline evaluation report. Prepared for CARE International.

  • Knight, G., & Greenberg, J. (2002). Promotionalism and subpolitics: Nike and its labor critics. Management Communication Quarterly, 15(4), 541–570.

    Article  Google Scholar 

  • Latour, B. (1987). Science in action: How to follow scientists and engineers through society. Milton Keynes: Open University Press.

    Google Scholar 

  • Levy, D., Brown, H., & de Jong, M. (2010). The contested politics of corporate governance: The case of the global reporting initiative. Management and Marketing Faculty Publication Series. Paper 1. Retrieved October 15, 2012, from http://scholarworks.umb.edu/management_marketing_faculty_pubs/1.

  • Lewicki, R., Gray, B., Elliot, M., et al. (2003). Making sense of intractable environmental conflicts: Concepts and cases. Washington, DC: Island Press.

    Google Scholar 

  • Lowe, P., & Goyder, J. (1983). Environmental groups in politics. London: George Allen & Unwin.

    Google Scholar 

  • Lubek, I., Lee, H., Wong, M. L., van Merode, T., Kros, S., McCourt, M., Schuster, J. C., Pagnutti, T., Ganapathi, S., Cadesky, J., Pollock, G., & Idema, R. (2009). La vie d’une vendeuse de bière au Cambodge—à mourir? Cahiers du Genre, 45, 77–102.

  • Margolis, J. D., & Walsh, J. P. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268–305.

    Article  Google Scholar 

  • Marshall, S., & Stecklow, S. (2000). Bar code: Cambodia’s “beer girls” peddle the product and endure the hassle. The Wall Street Journal (May 31, 2000).

  • Matten, D., & Crane, A. (2005). Corporate citizenship: Toward an extended theoretical conceptualization. Academy of Management Review, 30, 166–179.

    Article  Google Scholar 

  • Moore, E. (2010). Cambodia: A better life for beer girls. FinancialTimes.com. (December 9).

  • Nestlé. (2010). Introductory remarks of José Lopez for Nestlé at Open forum on Deforestation, One World Hotel, Kuala Lumpur, May 17, Press release from Nestlé.

  • Peloza, J., & Shang, J. (2011). How can corporate social responsibility activities create value for stakeholders? A systematic review. Journal of the Academy of Marketing Science, 39(1), 117–135.

    Article  Google Scholar 

  • Porter, M. E., & Kramer, M. R. (2002). The competitive advantage of corporate philanthropy. Harvard Business Review, Dec, 57–68.

  • Porter, M., & Kramer, M. (2006). Strategy and society: The link between competitive advantage and corporate social responsibility. Harvard Business Review, Dec, 78–93.

  • Pretty, J., Smith, G., Goulding, K., Groves, S., Henderson, I., Hine, R., et al. (2008). Multi-year assessment of Unilever’s progress towards agricultural sustainability II: Outcomes for peas (UK), spinach (Germany, Italy), tomatoes (Australia, Brazil, Greece, USA), tea (Kenya, Tanzania, India) and oil palm (Ghana). International Journal of Agricultural Sustainability, 6(1), 63–88.

    Article  Google Scholar 

  • Quinn, I. (2003). SBS: A baseline survey & needs assessment of beer promoters in Phnom Penh. Phnom Penh: CARE International Cambodia.

  • Rao, H. (2009). Market rebels: How activists make or break radical innovations. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Rehbein, K., Waddock, S., & Graves, S. B. (2004). Understanding shareholder activism: Which corporations are targeted? Business and Society, 43(3), 239–267.

    Article  Google Scholar 

  • Roome, N. (2011). A retrospective on globalization and sustainable development: The business challenge of systems organization and systems integration. Journal of Business and Professional Ethics, 30(3&4), 193–228.

    Google Scholar 

  • Roome, N. (2012). A cybernetic model of corporate responsibility. Sensing changes in business and society. International Journal of Technology Management, 60(1/2), 4–22.

    Article  Google Scholar 

  • Roome, N., Doove, R.-P., & Posetma, M. (2006). An anatomy of corporate social responsibility: Causal factors in CSR as a social movement and Business practice. In J. Jonker & M. de Witte (Eds.), The challenge of organising and implementing CSR (pp. 78–94). London: Palgrave.

    Google Scholar 

  • Rowley, T. J., & Moldoveanu, M. (2003). When will stakeholder groups act? An interest and identify-based model of stakeholder group mobilization. Academy of Management Review, 28, 204–219.

    Google Scholar 

  • Saiia, D. H., Caroll, A. B., & Buchholtz, A. K. (2003). Philanthropy as strategy—when corporate charity begins at home. Business and Society, 42(2), 169–201.

    Article  Google Scholar 

  • Schiffrin, A. (1998). Cambodia fears trouble’s brewing with “beer girls”. The Los Angeles Times, p. 14 (August 27).

  • Sjöström, E. (2008). Shareholder activism for corporate social responsibility: What do we know? Sustainable Development, 16(3), 141–154.

    Article  Google Scholar 

  • Spar, D., & La Mure, L. T. (2003). The power of activism: Assessing the impact of NGOs on global business. California Management Review, 45(3), 78–101.

    Article  Google Scholar 

  • United Nations. (1987). Report of the world commission on environment and development. General Assembly Resolution 42/187, December 11, 1987.

  • Van der Borght, S., Rinke de Wit, T. F., Janssens, V., Schim van der Loeff, M. F., Rijckborst, H., & Lange, J. M. (2006). HAART for the HIV-infected employees of large companies in Africa. Lancet, 368(9564), 547–550.

    Article  Google Scholar 

  • Van Dyke, N., Soule, S. A., & Taylor, V. (2004). The targets of social movements: Beyond a focus on the state. Research in Social Movements, Conflict, and Change, 25, 27–51.

    Article  Google Scholar 

  • Van Maanen, J. (1988). Tales of the weld: On writing ethnography. Chicago: University of Chicago Press.

    Google Scholar 

  • Van Merode, T. (2006). Antiretrovirals for employees of large companies in Cambodia. The Lancet. Retrieved November 22, 2011, from http://www.thelancet.com/journals/lancet/article/PIIS0140-6736(06)69436-1/fulltext. 16:15 hrs.

  • Vandekerckhove, W., Leys, J., & Van Braeckel, D. (2008). A speech-act model for talking to management. Building a framework for evaluating communication within the SRI engagement process. Journal of Business Ethics, 82(1), 77–91.

    Article  Google Scholar 

  • Wagner, T., Lutz, R. J., & Weitz, B. A. (2009). Corporate hypocrisy: Overcoming the threat of inconsistent corporate social responsibility perceptions. Journal of Marketing, 73(6), 77–91.

    Article  Google Scholar 

  • Walker, E., Martin, A. W., & McCarthy, J. D. (2008). Confronting the state, the corporation, and the academy: The influence of institutional targets on social movement repertoires. American Journal of Sociology, 114, 35–76.

    Article  Google Scholar 

  • Wood, J. D. (2010). Measuring corporate social performance: A review. International Journal of Management Reviews, 12(1), 50–84.

    Article  Google Scholar 

  • World Health Organisation. (2011). Global status report on alcohol and health. Retrieved May 7, 2012, from http://www.who.int/substance_abuse/publications/global_alcohol_report/msbgsruprofiles.pdf.

  • Yin, R. (1984). Case study research: Design and methods. Beverly Hills, CA: SAGE.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. ESADE Business School, Universitat Ramon Llull, Institute for Social Innovation, Barcelona, Spain

    Katinka C. Van Cranenburgh

  2. Erasmus Centre for Strategic Philanthropy, Erasmus School of Economics, Erasmus University Rotterdam, Rotterdam, The Netherlands

    Kellie Liket

  3. Vlerick School of Management, Leuven, Belgium

    Nigel Roome

Authors
  1. Katinka C. Van Cranenburgh
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Kellie Liket
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Nigel Roome
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Katinka C. Van Cranenburgh.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Van Cranenburgh, K.C., Liket, K. & Roome, N. Management Responses to Social Activism in an Era of Corporate Responsibility: A Case Study. J Bus Ethics 118, 497–513 (2013). https://doi.org/10.1007/s10551-012-1597-7

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10551-012-1597-7

Keywords

Search

Navigation