When ideologies align: Progressive corporate activism and within‐firm ideological alignment

Abstract

Research SummaryThis article examines the association between ideology and firm participation in sociopolitical activism. In particular, it focuses on the ideological alignment between a firm's upper echelons and its general employees. We theorize that participation in progressive corporate activism reflects the ideological views of both the top management team and general employees. By examining firm participation in letter campaigns supporting progressive causes, our findings indicate that ideological alignment between a top management teams and general employees' liberal political leanings is associated with a firm's participation in progressive corporate activism. The CEO's own ideological preferences do not have an independent association with this kind of activism. This article concludes with a discussion of implications for our understanding of corporate political action and nonmarket strategy.Managerial SummaryThis article looks at the relationship between political ideology and firm participation in sociopolitical activism. Although some have argued that firms' activism reflects a CEO's ideological preferences or employee activism, we find that neither explanation fully accounts for the kinds of companies that engage in this kind of activism. We find that progressive corporate activism reflects the ideological views of both top management and general employees. Our findings suggest that companies that have ideological alignment on progressive issues are more likely to take public stands on those issues because the stands reinforce core values held by employees and the top management.