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de Bakker, Frank G.A. and Frank den Hond


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Activists' Influence Tactics and Corporate Policies   (peer-reviewed)   (members only)

Corporations increasingly pay attention to issues of social responsibility, but their policies and procedures to articulate such responsibilities are not just a result of the good will of top management. Often, such policies and procedures are devised because some stakeholders raised their voice on issues relating to the interests of employees, investors, governments, and others. One category of visible though heterogeneous stakeholders is composed of 'activist groups.' In this article, we present a range of tactics that activist groups employ to influence corporate policy and conclude with some corporate policy responses to these tactics, illustrated with some examples. Different Tactics Activist groups usually start an influence campaign by collecting and organizing information about some issue about which they are concerned (e.g., sustainable development, human rights, labor conditions), disseminating this information to their audiences and formulating desired outcomes. They inform the target firm's top management of their particular concern and propose desired outcomes or alternative courses of action. If the firm's responses are considered inadequate, they will likely continue their campaign, but by starting to employ a more varied set of tactics. Below, we discuss four different types of tactics that activist groups use to leverage pressure on firms and that do not rely on the state or legal action for resolution of the issue: shareholder activism, political consumerism, social alliances, and alternative business systems (de Bakker and den Hond, 2007).

de Bakker, Frank G.A. and Frank den Hond. Business Communication Quarterly (2008). Articles>Business Communication>Policies and Procedures