A strategic approach to CEO activism: issue selection and communication of motives

Abstract

ABSTRACT Despite the recent surge in CEO activism, studies on strategic communication and management approaches to CEO activism have been scarce. Drawing from issue maturity models and attribution theory, this study proposed two important factors for a strategic approach to CEO activism: strategic selection of activism issues and communication of motives. This study examined the impact of these factors on public responses. An online experiment was conducted using a randomized 2 (issue maturity: controversial vs. matured issue) x 2 (communication about motivation: society-serving vs. society- and firm-serving) full factorial design, drawing on samples of general consumers. The findings revealed that the more mature the activism topic, the greater the public trust in CEO activism and evaluation of CEO leadership. Proper communication of motives was found to mitigate, to some extent, the negative effects of CEO activism arising from controversial issues. The combination of mature issue selection and appropriate communication of motives had a positive effect on public trust and leadership evaluation, resulting in favorable outcomes such as brand loyalty, company-consumer identification, and advocacy intentions.