ABSTRACT
Recent decades have witnessed the proliferation of non-governmental organizations (NGOs) and the emergence of activism across a wide variety of issues.1 NGOs and activists represent an increasingly important constituency in a firm’s nonmarket environment on topics ranging from human rights to labour conditions. Surprisingly, however, scholars have only recently begun to consider seriously the interaction between NGOs and firms. As an early step in an emerging research programme, we explore the different ways in which firms manage NGO pressure, noting instances of pre-emption, capitulation and resistance. Through a consideration of three case studies – Unocal, Nike and Novartis – we evaluate a series of preliminary hypotheses about the economic and non-economic factors that drive variation in firms’ responses to NGO activism. We conclude with a discussion of our findings and some implications for managers.
