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Lecture notes Organizations & Social Movements (B3EL114)
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Organizations & SocialMovements
Lecture 5
Today session
Impact of SMs on organizations
Responses by organizations
Introduction
Have not talked about organizations such as firms or NGOs
Very reflective of study of social movements and organizations been quite distinct and viewed as
separate matters
Relatively recently have those schools come closer together; 1990s and early 2000s
Lack of overlap is no surprise because social movements are about disruptive actions while
organizations focus on stability and their status quo
Often tightly coupled as they influence each other
Pressure by activists is often unexpected, and deeply distressing the organization outside their
standard operating procedures or experience and expertise
Important relationship is that organizations can be targets of social movements
o Practices they feel strongly aggrieved about violating societies interests
o Seek to change organizations practices and behaviors
Although fast and large-scale change in organizations is rare there is a widespread adoption of
for example environmental conservation practices or LGBT rights
, Impact of SMs on organizations
Disruption of resources
Financial losses and negative financial performance
o E.g. protest on stock prices and leading to negative stock price returns
Impact the external ratings of organizations
o E.g. receive “concern” rating form rating firms which helps investors to make informed
decisions
Influence the relationship between organizations and stakeholders
o E.g. governments return political contributions from organizations and cancel contracts
Disruption of reputation
Reputation = unique evaluation of an organizations’ behavior and quality of products / services
by people in society
Why does it matter?
o Can build reputation by sending performance and quality signals
o Reputations sets an organization apart from others
o Consequence for an organization’s performance, people might disengage form low
reputation organizations
Social movements prefer to attack organizations that are highly visible and have a high
reputation
o Seek to generate more media attention makes the targeted organization more
vulnerable to reputation threats enhancing influence
o When these high reputation organizations concede to demands it creates a perception
of threat among other organizations responding out of fear that they might be targeted
too
Organizations with a high reputation and a positive track record engaging in socially
reprehensible behavior are more likely to be attacked by social movements
o Organizational hypocrisy which attracts greater outrage
o E.g. Nike brands themselves as good corporate citizen but have detrimental labor
conditions
o Consequence organizations adopt “strategic silence” regarding positive social activities in
order to no attract unwanted attention from social movements
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