Bad company: Shifts in Social Activists’ Tactics and Resources after Industry Scandals

Organization Science (Forthcoming)

43 Pages Posted: 24 Jul 2017 Last revised: 16 Sep 2020

See all articles by Mary-Hunter McDonnell

Mary-Hunter McDonnell

The Wharton School - The University of Pennsylvania

Kate Odziemkowska

Rice University - Jesse H. Jones Graduate School of Business

Elizabeth G. Pontikes

University of Chicago - Booth School of Business

Date Written: September 15, 2020

Abstract

Social Movement Organizations (SMOs) are increasingly using collaborative tactics to engage firms. Implications of this are not well understood by researchers. This study investigates one risk that looms over such collaborations: if the corporate partner is later implicated in an industry scandal. Ideas are investigated in the context of the Deepwater Horizon Oil spill. First, we find that industry scandals differentially affect contentious and collaborative SMOs' ability to mobilize resources. SMOs that had collaborated with the oil and gas industry before the spill suffered from reduced public support after the spill, while those that had contentiously interacted with the industry enjoyed increased contributions. Second, we find that industry scandals affect SMOs' willingness to collaborate with firms in the future. We show that the Horizon Oil Spill produced a broad chilling effect on environmental SMOs' collaborations with firms both within and outside of the oil and gas industry. Our findings show that there are risks inherent to a collaborative strategy which cannot be fully mitigated. Further, we demonstrate that industry scandals represent critical exogenous events that affect social activists' tactical repertoires for engaging in private politics.

Keywords: social movement organizations, cross-sector collaboration, crisis, stigma, reputation

Suggested Citation

McDonnell, Mary-Hunter and Odziemkowska, Kate and Pontikes, Elizabeth G., Bad company: Shifts in Social Activists’ Tactics and Resources after Industry Scandals (September 15, 2020). Organization Science (Forthcoming), Available at SSRN: https://ssrn.com/abstract=3005520 or http://dx.doi.org/10.2139/ssrn.3005520

Mary-Hunter McDonnell (Contact Author)

The Wharton School - The University of Pennsylvania ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Kate Odziemkowska

Rice University - Jesse H. Jones Graduate School of Business ( email )

6100 South Main Street
P.O. Box 1892
Houston, TX 77005-1892
United States

Elizabeth G. Pontikes

University of Chicago - Booth School of Business ( email )

5807 S. Woodlawn Avenue
Chicago, IL 60637
United States

HOME PAGE: http://faculty.chicagobooth.edu/elizabeth.pontikes/

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