The Power of Activism: Assessing the Impact of NGOs on Global Business (original) (raw)

Recent decades have witnessed the proliferation of non-governmental organizations (NGOs) and the emergence of activism across a wide variety of issue areas. On topics ranging from human rights to labor conditions, NGOs and activists represent an increasingly important constituency in a firm's nonmarket environment. Surprisingly, however, scholars have only recently begun to seriously consider the interaction between NGOs and firms. As an early step in an emerging research program, we explore the different ways in which firms manage NGO pressure, noting instances of preemption, capitulation and resistance. Through a consideration of three case studies, Unocal, Nike and Novartis, we evaluate a series of preliminary hypotheses about the economic and non-economic factors that drive variation in firms' responses to NGO activism. We conclude with a discussion of our findings and some implications for managers.