Social Movements, Risk Perceptions, and Economic Outcomes: The Effect of Primary and Secondary Stakeholder Activism on Firms' Perceived Environmental Risk and Financial Performance

American Sociological Review

Volumn 77, Issue 4, 2012, Pages 573-596

  Vasi, Ion Bogdan ^a   King, Brayden G ^b  

^a Och Spine at New York Presbyterian Hospitals   (United States)

^b NORTHWESTERN UNIVERSITY   (United States)

Author keywords

environment; organizations; risk; social movements

Indexed keywords

DECISION MAKING; EMPIRICAL ANALYSIS; ENVIRONMENTAL RISK; FINANCIAL SYSTEM; RISK PERCEPTION; SOCIAL MOVEMENT; STAKEHOLDER;

UNITED STATES;

EID: 84864746371     PISSN: 00031224     EISSN: 19398271     Source Type: Journal    
DOI: 10.1177/0003122412448796     Document Type: Article

References (95)

1. Adam Barbara,van Loon JoostThe Risk Society and Beyond. Adam B.Beck U.van Loon J., ed. London: Sage Publications; 2000:1-33.
2. Agnone Jon.Amplifying Public Opinion: The Policy Impact of the U.S. Environmental Movement.Social Forces. 2007;85:1593-1620.
3. Amenta Edwin,Caren Neal,Chiarello Elizabeth,Su Yang.The Political Consequences of Social Movements.Annual Review of Sociology. 2010;36:287-307.
4. Anand Jaideep,Singh Harbir.Asset Redeployment, Acquisitions, and Corporate Strategy in Declining Industries.Strategic Management Journal. 1997;18:99-118.
5. Andersson Lynne,Bateman Thomas.Individual Environmental Initiatives: Championing Natural Environmental Issues in U.S. Business Organizations.Academy of Management Journal. 2000;43:548-70.
6. Andrews Kenneth T.Social Movements and Policy Implementation: The Mississippi Civil Rights Movement and the War on Poverty, 1965 to 1971.American Sociological Review. 2001;66:71-95.
7. Armstrong Elizabeth,Bernstein Mary.Culture, Power, and Institutions: A Multi-institutional Politics Approach to Social Movements.Sociological Theory. 2007;26:74-99.
8. Associated Press. 2004. "Environmentalists Protesting Energy Company's Stance on Global Warming." Associated Press State & Local Wire, May25.
9. Bansal Pratima,Clelland Iain.Talking Trash: Legitimacy, Impression Management, and Unsystematic Risk in the Context of the Natural Environment.Academy of Management Journal. 2004;47:93-103.
10. Bansal Pratima,Roth Kendall.Why Companies Go Green: A Model of Ecological Responsiveness.Academy of Management Journal. 2000;43:717-36.
11. Baron David.Competing for the Public through the News Media.Journal of Economics & Management Strategy. 2005;14:339-76.
12. Beck UlrichRisk Society: Towards a New Modernity. New Delhi, India: Sage; 1992:.
13. Bosso ChristopherEnvironment, Inc.: From Grassroots to Beltway. Lawrence: University Press of Kansas; 2005:.
14. Burstein PaulHow Social Movements Matter. Giugni M.McAdam D.Tilly C., ed. Minneapolis: University of Minnesota Press; 1999:3-21.
15. Burstein Paul,Linton April.The Impact of Political Parties, Interest Groups, and Social Movement Organizations on Public Policy: Some Recent Evidence and Theoretical Concerns.Social Forces. 2002;81:380-408.
16. STMicroelectronics Ranked by Innovest Strategic Value Advisors as World's Only 'AAA.' 2000;:31.
17. Cress Daniel,Snow David.The Outcomes of Homeless Mobilization: The Influence of Organization, Disruption, Political Mediation and Framing.American Journal of Sociology. 2000;105:1063-1104.
18. Davis Gerald,Thompson Tracy.A Social Movement Perspective on Corporate Control.Administrative Science Quarterly. 1994;39:141-73.
19. DiMaggio Paul,Powell Walter.The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields.American Sociological Review. 1983;48:147-60.
20. Doh Jonathan,Guay Terence.Corporate Social Responsibility, Public Policy, and NGO Activism in Europe and the United States: An Institutional-Stakeholder Perspective.Journal of Management Studies. 2006;43:47-73.
21. Dunlap Riley,Mertig AngelaAmerican Environmentalism: The U.S. Environmental Movement, 1970-1990. Bristol, PA: Taylor and Francis; 1992:.
22. Eesley Charles,Lenox Michael.Firm Responses to Secondary Stakeholder Action.Strategic Management Journal. 2006;27:765-81.
23. Elliot Nils LindahlMediating Nature: Environmentalism and Modern Culture. London: Routledge; 2006:.
24. Etzion Dror.Research on Organizations and the Natural Environment, 1992-Present: A Review.Journal of Management. 2007;33:637-64.
25. Florida Richard.Lean and Green: The Move to Environmentally Conscious Manufacturing.California Management Review. 1996;39:80-105.
26. Forbes Linda,Jermier JohnOrganizations, Policy, and the Natural Environment: Institutional and Strategic Perspectives. Hoffman A.Ventresca M., ed. Stanford, CA: Stanford University Press; 2002:194-213.
27. Freeman EdwardStrategic Management: A Stakeholder Approach. Cambridge: Cambridge University Press; 2010:.
28. Gamson WilliamThe Strategy of Social Protest. 1990. The Strategy of Social Protest, 2nd ed.Belmont, CA: Wadsworth.Belmont, CA: Wadsworth; 1990:.
29. Gangl Markus.Causal Inference in Sociological Research.Annual Review of Sociology. 2010;36:21-47.
30. Giddens AnthonyModernity and Self-Identity: Self and Society in the Late Modern Age. Cambridge, UK: Polity; 1991:.
31. Giugni Marco.Was It Worth the Effort? The Outcomes and Consequences of Social Movements.Annual Review of Sociology. 1998;24:371-93.
32. Gompers Paul,Ishii Joy,Metrick Andrew.Corporate Governance and Equity Prices.Quarterly Journal of Economics. 2003;118:107-155.
33. Hanson Robert,Song Moon.Long-Term Performance of Divesting Firms and the Effect of Managerial Ownership.Journal of Economics & Finance. 2003;27:321-36.
34. Hendry Jamie.Taking Aim at Business: What Factors Lead Environmental Non-governmental Organizations to Target Particular Firms?Business and Society. 2006;45:47-86.
35. Hoffman AndrewFrom Heresy to Dogma: An Institutional History of Corporate Environmentalism. San Francisco, CA: The New Lexington Press; 1997:.
36. Hoffman Andrew,Ventresca MarcOrganizations, Policy, and the Natural Environment: Institutional and Strategic Perspectives. Stanford, CA: Stanford University Press; 2002:.
37. Ingram Paul,Yue Lori,Rao Hayagreeva.Trouble in Store: Probes, Protests, and Store Openings by Wal-Mart, 1998-2007.American Journal of Sociology. 2010;116:53-92.
38. Jonsson Stefan,Greve Henrich,Fujiwara-Greve Takako.Undeserved Loss: The Spread of Legitimacy Loss to Innocent Organizations in Response to Reported Corporate Deviance.Administrative Science Quarterly. 2009;54:195-228.
39. Kahneman Daniel,Tversky Amos.Prospect Theory: An Analysis of Decision Under Risk.Econometrica. 1979;47:263-91.
40. King Brayden.A Political Mediation Model of Corporate Response to Social Movement Activism.Administrative Science Quarterly. 2008a;53:395-421.
41. King Brayden.A Social Movement Perspective of the Stakeholder Collective Action and Influence.Business and Society. 2008b;47:21-49.
42. King Brayden,Pearce Nicholas.The Contentiousness of Markets: Politics, Social Movements and Institutional Change in Markets.Annual Review of Sociology. 2010;36:249-67.
43. King Brayden,Soule Sarah.Social Movements as Extra-Institutional Entrepreneurs: The Effect of Protests on Stock Price Returns.Administrative Science Quarterly. 2007;52:413-42.
44. KLD Research and Analytics. 2006. "Getting Started with KLD Stats and KLD's Ratings Definitions." KLD Research and Analytics Inc. Document accessed through Wharton Research Data Services.
45. Konar Shameek,Cohen Marc.Information as Regulation: The Effect of Community Right to Know Laws on Toxic Emissions.Journal of Environmental Economics and Management. 1997;32:109-124.
46. Kurtz LloydThe Oxford Handbook of Corporate Social Responsibility. Crane A.McWilliams A.Matten D.Moon J.Siegel D., ed. Oxford: Oxford University Press; 2008:249-80.
47. Lang Larry,Stulz Rene.Tobin's q, Corporate Diversification, and Firm Performance.Journal of Political Economy. 1994;102:1248-80.
48. Lenox Michael,Eesley Charles.Private Environmental Activism and the Selection and Response of Firm Targets.Journal of Economics and Management Strategy. 2009;18:45-73.
49. LettoJay. 1995. "TV Lets Corporations Pull Green Wool Over Viewers' Eyes." FAIR, July/August. Retrieved July 2010 (http://www.fair.org/index.php?page=1309).
50. Lipsky Michael.Protest as a Political Resource.American Political Science Review. 1968;62:1144-58.
51. Lounsbury Michael.Cultural Entrepreneurship: Stories, Legitimacy, and the Acquisition of Resources.Strategic Management Journal. 2001;22:545-64.
52. Luders Joseph.The Economics of Movement Success: Business Responses to Civil Rights Mobilization.American Journal of Sociology. 2006;111:963-98.
53. Maguire Steve,Phillips Nelson.Theorising Risk and Organization. Presented at the European Group for Organization Studies Annual Colloquium; 2009Barcelona, Spain; 2009.
54. McAdam Doug,Su Yang.The War at Home: Antiwar Protests and Congressional Voting, 1965 to 1973.American Sociological Review. 2002;67:696-721.
55. McCammon Holly,Campbell Karen,Granberg Ellen,Mowery Christine.How Movements Win: Gendered Opportunity Structures and U.S. Women's Suffrage Movements, 1866-1919.American Sociological Review. 2001;66:49-70.
56. McDonnell Mary Hunter,King Brayden G.Keeping up Appearances: The Use of Corporate Social Responsibility Initiatives to Palliate an Image Threat. Presented at the Annual Meetings of American Sociological Association; 2010Atlanta, GA; 2010.
57. McWilliams Abagail,Siegel Donald.Corporate Social Responsibility and Financial Performance: Correlation or Misspecification.Strategic Management Journal. 2000;21:603-609.
58. McWilliams Abagail,Siegel Donald.Corporate Social Responsibility: A Theory of the Firm Perspective.Academy of Management Review. 2001;26:117-27.
59. Milstein Mark,Hart Stuart,York AnneOrganizations, Policy, and the Natural Environment: Institutional and Strategic Perspectives. Hoffman A.Ventresca M., ed. Stanford, CA: Stanford University Press; 2002:151-72.
60. Minkoff Debra.Bending with the Wind: Strategic Change and Adaptation by Women's and Racial Minority Organizations.American Journal of Sociology. 1999;104:1666-1703.
61. OrolRonald D.2010. "After Disasters, Shareholder Pressure Tactics Get New Life: Investor-Activists See Strong Momentum for 'Environmental Risk' Proposals." Market Watch. Retrieved August 2010 (http://www.marketwatch.com/story/green-shareholder-pressure-seen-on-the-rise-2010-08-08).
62. Perrow CharlesNormal Accidents: Living with High-Risk Technologies. Princeton, NJ: Princeton University Press; 1999:.
63. Piven Frances,Cloward RichardPoor People's Movements: Why they Succeed, How they Fail. New York: Pantheon; 1977:.
64. Potoski Matthew,Prakash Aseem.Green Clubs and Voluntary Governance: ISO 14001 and Firms' Regulatory Compliance.American Journal of Political Science. 2005;49:235-48.
65. Pozner Jo-Ellen.Stigma and Settling Up: An Integrated Approach to the Consequences of Organizational Misconduct for Organizational Elites.Journal of Business Ethics. 2008;80:141-50.
66. Proffitt Trexler,Spicer Andrew.Shaping the Shareholder Activism Agenda: Institutional Investors and Global Social Issues.Strategic Organization. 2006;4:165-90.
67. Raeburn NicoleChanging Corporate America from Inside Out: Lesbian and Gay Workplace Rights. Minneapolis, MN: University of Minnesota Press; 2004:.
68. Rao HayagreevaMarket Rebels: How Activists Make or Break Radical Innovations. Princeton, NJ: Princeton University Press; 2009:.
69. Reid Erin,Toffel Michael.Responding to Public and Private Politics: Corporate Disclosure of Climate Change Strategies.Strategic Management Journal. 2009;30:1157-78.
70. Renn OrtwinThe Tolerability of Risk: A New Framework for Risk Management. Bouder F.Slavin D.Löfstedt R., ed. Sterling, VA: Earthscan; 2007:21-75.
71. ReynoldsDonald. 2007. "'Green' Reporting in Business News Sections." Retrieved August 2010 (http://www.businessjournalism.org/bizjournalism/ReynoldsCenter_GreenReport.pdf).
72. Santoro Wayne A.,McGuire Gail M.Social Movement Insiders: The Impact of Institutional Activists on Affirmative Action and Comparable Worth Policies.Social Problems. 1997;44:503-519.
73. Scheytt Tobias,Soin Kim,Sahlin-Andersson Kerstin,Power Michael.Special Research Symposium: Organizations and the Management of Risk - Introduction: Organizations, Risk and Regulation. Journal of Management Studies; 2006; 2006. 1331.
74. Schneider Greg.GE Determined to Show More 'Ecomagination.'Washington Post. 2005;:E02.
75. Schurman Rachel,Munro William.Targeting Capital: A Cultural Economy Approach to Understanding the Efficacy of Two Anti-Genetic Engineering Movements.American Journal of Sociology. 2009;115:155-202.
76. Servaes Henri.Tobin's Q and the Gains from Takeovers.Journal of Finance. 1991;46:409-419.
77. Short James.The Social Fabric at Risk: Toward the Social Transformation of Risk Analysis.American Sociological Review. 1984;49:711-25.
78. Sine Wesley,Lee Brandon.Tilting at Windmills? The Environmental Movement and the Emergence of the U.S. Wind Energy Sector.Administrative Science Quarterly. 2009;54:123-55.
79. Smith CraigThe Oxford Handbook of Corporate Social Responsibility. Crane A.McWilliams A.Matten D.Moon J.Siegel D., ed. New York: Oxford University Press; 2008:281-302.
80. Soule SarahContention and Corporate Social Responsibility. New York: Cambridge University Press; 2009:.
81. Soule Sarah,McAdam Doug,McCarthy John,Su Yang.Protest Events: Cause or Consequence of the U.S. Women's Movement and Federal Congressional Activities, 1956-1979.Mobilization. 1999;4:239-56.
82. Soule Sarah,Olzak Susan.When do Movements Matter? The Politics of Contingency and the Equal Rights Amendment.American Sociological Review. 2004;69:473-98.
83. Stock James,Yogo MotohiroIdentification and Inference for Econometric Models: Essays in Honor of Thomas Rothenberg. Andrews D. W. K.Stock J. H., ed. New York: Cambridge University Press; 2005:80-108.
84. TerraChoice Environmental Marketing. 2007. "The Six Sins of Greenwashing: A Study of Environmental Claims in North American Consumer Markets." Retrieved July 2010 (http://www.terrachoice.com/files/6_sins.pdf).
85. Tversky Amos,Kahneman Daniel.Judgment under Uncertainty: Heuristics and Biases.Science. 1974;85:1124-31.
86. Van Dyke Nella,Soule Sarah,Taylor Verta.The Targets of Social Movements: Beyond a Focus on the State.Research in Social Movements, Conflicts, and Change. 2004;25:27-51.
87. Vasi Ion Bogdan.Social Movements and Industry Development: The Environmental Movement's Impact on the Wind Energy Industry.Mobilization: An International Journal. 2009;14:315-36.
88. Vasi Ion BogdanWinds of Change: The Environmental Movement and the Global Development of the Wind Energy Industry. New York: Oxford University Press; 2011:.
89. Vogel DavidThe Market for Virtue: The Potential and Limits of Corporate Social Responsibility. Washington, DC: Brookings Institution Press; 2006:.
90. Waddock Samuel,Graves Sandra.The Corporate Social Performance-Financial Performance Link.Strategic Management Journal. 1997;18:303-319.
91. Walker Edward,Martin Andrew,McCarthy John.Confronting the State, the Corporation, and the Academy: The Influence of Institutional Targets on Social Movement Repertoires.American Journal of Sociology. 2008;114:35-76.
92. Weber Klaus,Rao Hayagreeva,Thomas L. G.From Streets to Suites: How the Anti-Biotech Movement Affected German Pharmaceutical Firms.American Sociological Review. 2009;74:106-127.
93. WingfieldBrianMarcusMiriam. 2007. "America's Greenest States." Forbes. Retrieved November 2008 (http://www.forbes.com/2007/10/16/environment-energy-vermont-biz-beltway-cx_bw_mm_1017greenstates.html).
94. Zald Mayer,Morrill Calvin,Rao HayagreevaSocial Movements and Organization Theory. Davis G.McAdam D.Scott R.Zald M., ed. New York: Cambridge University Press; 2005:253-79.
95. ZellerTomJr.2010. "Banks Grow Wary of Environmental Risks." New York Times, August30. Retrieved September 2010 (http://www.nytimes.com/2010/08/31/business/energy-environment/31coal.html?_r=1).