Example Of How Corporate Activism Alters Companies Article Review
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Summary of the article
Phillips (2015) in her article entitled “Sarah Soule: How Corporate Activism Alters Corporations” explained in layman’s terms the research conducted by Sarah Soule regarding the impacts of corporate activism among corporations. She mentioned that corporate activists are often frustrated that their actions cannot achieve any monumental impacts even after many years. The study cited by Phillips shows that every pickets, resolutions, and lobby activities made by corporate activists is leading to significant changes among corporations. It further showed that the more activism activities conducted the more that corporations react on particular issues.
The researcher told the activists not to be dismayed with the seemingly little impact of their campaign activities. Soule iterated:
“Companies targeted by activists become more socially responsible over time,” (Phillips, 2015).It means that every time that a company is exposed to irregular issues; they will become more conscious in the future. Grabbing attention alone to expose the issues concerning corporate issues means huge in the part of the companies. It will mean reduced credibility of the corporations in the eyes of the investors. Corporate activism the article mentioned can also lead to constructive cooperation between the activists and the corporations.
Why is it important?
Corporate activism is important in the field of business to maintain the balance of profit and social responsibility. It is important in order for the corporations to touch the ground. It directs companies not to bankruptcy but to a more sustainable future through pointing out the bad things happening that might even be overlooked by the companies’ managements. It directs them [corporations] to be a good profit-oriented organization in the long run as long as they heed the cries of the activists.
On the other hand, the research summarized by Phillips needed to be popularized among the corporate activists to boost their morale. It will give them the inspiration to continue the work as it has an incremental change on how companies respond to the issues. It is also important that the article mentioned of the how activists and corporations collaborate for a better future. In the mainstream publications, the unending conflict between the two is energy-draining. There is already a need to meet half way to be able to work things out and move forward for the betterment of the whole community.
How is it related to Organizational Behaviour?
It is related to organizational behaviour as it tackles about how two different dynamics of organizations. The article discussed how communication in all its forms can affect the management of a corporate organization. It tackled how activism can significantly shake the management of companies compelling them to respond mostly positively. On the other hand, it the article discussed about how the organizations of corporate activists can be weakened with the thought that they are not getting any monumental responses from the companies. With the enumeration of the significant contribution of activism in altering the perspectives and plans of companies, it will motivate those in the activism world to continue their work.
Phillips, Cheryl. “Sara Soule: How Corporate Activism Alters Companies.” Stand ford Business, 5 Jan. 2015. Web. 18 Jan. 2015.
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