Journal article
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, Vol.77(4), pp.573-596
08/01/2012
DOI: 10.1177/0003122412448796
Abstract
Although risk assessments are critical inputs to economic and organizational decision-making, we lack a good understanding of the social and political causes of shifts in risk perceptions and the consequences of those changes. This article uses social movement theory to explain the effect of environmental activism on corporations' perceived environmental risk and actual financial performance. We define environmental risk as audiences' perceptions that a firm's practices or policies will lead to greater potential for an environmental failure or crisis that would expose it to financial decline. Using data on environmental activism targeting U.S. firms between 2004 and 2008, we examine variation in the effectiveness of secondary and primary stakeholder activism in shaping perceptions about environmental risk. Our empirical analysis demonstrates that primary stakeholder activism against a firm affects its perceived environmental risk, which subsequently has a negative effect on the firm's financial performance.
Details
- Title: Subtitle
- Social Movements, Risk Perceptions, and Economic Outcomes: The Effect of Primary and Secondary Stakeholder Activism on Firms' Perceived Environmental Risk and Financial Performance
- Creators
- Ion Bogdan Vasi - Columbia UniversityBrayden G. King - IC Manage
- Resource Type
- Journal article
- Publication Details
- American sociological review, Vol.77(4), pp.573-596
- DOI
- 10.1177/0003122412448796
- ISSN
- 0003-1224
- eISSN
- 1939-8271
- Publisher
- Sage
- Number of pages
- 24
- Language
- English
- Date published
- 08/01/2012
- Academic Unit
- Sociology and Criminology; Management and Entrepreneurship ; Center for Social Science Innovation
- Record Identifier
- 9984305977702771
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