Corporate sociopolitical activism

Corporate sociopolitical activism (CSA) refers to a firm's public demonstration of support or opposition to a partisan sociopolitical issue. CSA has become increasingly prominent in recent years, as firms have taken stances on issues such as climate change, racial justice, reproductive rights, gun control, immigration, LGBTQ+ rights, and gender equality.

Woke capitalism, woke capital and stakeholder capitalism are terms used by some commentators to refer to a form of marketing, advertising and corporate structures that pertains to sociopolitical standpoints tied to social justice and activist causes. The term was coined by columnist Ross Douthat in "The Rise of Woke Capital", an article written for and published in The New York Times in 2018.

Firms may engage in CSA to appeal to purpose-driven ideals, as well as contribute to more strategic motives, in line with consumers' existing preferences for moral purchasing options. Indeed, a recent study found that 64% of global consumers choose to buy or boycott a given brand on the basis of its political leanings, a result suggesting the increasing importance of ethical consumerism practices.

In addition, the 2020 CMO Survey revealed that a growing proportion of marketing leaders find it acceptable to make changes to products and services in response to political issues (47.2%), have executives speak out on political issues (33.3%), and use marketing communications to speak out on political issues (27.8%). Further, brands engaged in an unprecedented level of activist behavior in response to consumers protesting racial injustice in 2020.

Firms have historically strayed from vocalizing stances on controversial sociopolitical matters, with the understanding that doing so could sever certain stakeholder relationships. However, modern cultural shifts have precipitated a “hyper-partisan” climate, leading to demand for firms to exercise purpose-driven efforts in the marketplace. As stated by Richard Edelman, chief executive officer (CEO) of Edelman, “Brands are now being pushed to go beyond their classic business interests to become advocates. It is a new relationship between a company and consumer, where a purchase is premised on the brand’s willingness to live its values, act with purpose, and, if necessary, make the leap into activism.”