The Power of Activism: Assessing the Impact of NGOs on Global Business

Authors: Spar, Debora L.; LaMure, Lane T.
Source: California Management Review
Year: 2003

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Abstract:

Recent decades have witnessed the proliferation of nongovernmental 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. Explores the different ways in which firms manage NGO pressure, noting instances of preemption, capitulation, and resistance. Considers three case studies--Unocal, Nike, and Novartis--and evaluates a series of hypotheses about the economic and noneconomic factors that drive the varying firm responses to NGO activism.