In this article, we argue that the occurrence, trajectory, and impact of consumer activism are in large part driven by the political environment in which firms operate, particularly by their country's level of polarization and the political makeup of their core customer base. In environments characterized by low levels of political polarization, companies are embroiled in a relatively small number of political controversies, and as a result are rarely the target of consumer activism. Conversely, in highly polarized environments, people's political sensibilities are easily offended, which leads to a relatively large number of political controversies. These controversies tend to arise along party lines, meaning they elicit a consumer boycott exclusively from one side of the political spectrum. Such partisan boycotts lead people on the other side of the political spectrum to rally around the company at the center of the controversy and to purchase more of its products. Whether a company's sales end up decreasing or increasing depends on the nature of the issue at the heart of the controversy as well as on the political beliefs of its core customer base. We conclude by describing how companies can successfully navigate this complex interplay between political polarization, consumer activism, and customers' political preferences.

This is an MIT Sloan Management Review Article. The current corporate sustainability movement is unsustainable, the authors argue. Not because companies are pursuing the wrong goals - but because they are going about them the wrong way. Never before have companies been more conscious of the need to run their businesses in an environmentally, socially, and economically responsible fashion. Yet never before have theory and practice been wider apart. When it comes to practicing and not just preaching sustainability, many companies struggle and most flounder in developing and implementing a sustainable business model. Many executives know and feel the importance of making their businesses sustainable. But many of them can't make the transformation occur. Worse still, many don't even know they're failing. Based on their experience and observations, the authors identify key roadblocks to embedding sustainable business models and offer a roadmap to circumvent them. According to the authors, companies need to recognize that sustainability is not just another change initiative. Change-management initiatives are usually driven by some external factors or by lack of internal performance and are typically directed at increasing profitability and shareholder value. Sustainability, on the other hand, is about people and planet as well, not just profit. Sustainability involves creating value for all stakeholders in the ecosystem and viewing profits as a consequence of such value creation. Sustainability also requires a business to look at its entire value chain. A company's sustainability initiative, the authors argue, should be led by the CEO and should become a priority for the board. Business executives should also strive to attract the support of the company's middle management.

This abridged case deals with the quest for boundaries of corporates' social and environmental responsibility. It poses the question where the responsibility of a company might start or end in a given context and once the company has been able to assess the extent to which it holds itself responsible, what action it ought to take in this regard. In the case of Axel Springer the question is focused on the aspect how much responsibility the company might have for its supply chain: how far and how deep down the supply chain does or should responsibility of a corporation reach? On what facts does this responsibility depend? The publishing house Axel Springer AG serves as good example as it wonders about the scope of their responsibility: After making the strategic decision to move aggressively into the field of digital news and media, the company wonders about their responsibility for digital devices, in particular with respect to conflict minerals that are extracted for the production and use of such electronic devices under highly problematic conditions.

Many companies today believe that corporate social responsibility (CSR) acts as a reservoir of goodwill, insulating the firm from the negative impacts of a crisis. Yet, the impact of CSR on public reaction to corporate crises is more complex. Drawing on research on stakeholder reactions to CSR and--more specifically--corporate crises, we present a contingent framework for understanding the roles of CSR in corporate crises and how to manage it. This framework posits that CSR plays four important roles: it (1) increases stakeholders' attention to crises, (2) affects blame attributions, (3) raises expectations, and (4) changes stakeholders' evaluations of crisis situations. Several factors underlying these roles are also discussed. Overall, this article underscores that while CSR may insulate companies and mitigate stakeholders' negative responses in some cases, in others it may actually lead to the opposite effect, amplifying the negative impact of a crisis. The article ends with a brief discussion of the implications of our framework for effective crisis management strategies in the age of CSR.

The case deals with the quest for boundaries of corporates' social and environmental responsibility. It poses the question where the responsibility of a company might start or end in a given context and once the company has been able to assess the extent to which it holds itself responsible, what action it ought to take in this regard. In the case of Axel Springer the question is focused on the aspect how much responsibility the company might have for its supply chain: how far and how deep down the supply chain does or should responsibility of a corporation reach? On what facts does this responsibility depend? The publishing house Axel Springer AG serves as good example as it wonders about the scope of their responsibility: After making the strategic decision to move aggressively into the field of digital news and media, the company wonders about their responsibility for digital devices, in particular with respect to conflict minerals that are extracted for the production and use of such electronic devices under highly problematic conditions.

This is an MIT Sloan Management Review article. As the war for talent intensifies, there is growing evidence that a company's corporate social responsibility activities comprise a legitimate and compelling way to attract and retain good employees. To burnish their social responsibility credentials and thereby attract and retain talent, CEOs of companies such as Home Depot, Delta Air Lines and SAP recently pledged to deploy millions of employee volunteers on various community projects. Indeed, many companies big and small, including Cisco Systems, General Electric and IBM, view employee engagement in CSR as a "strategic imperative." But few organizations have figured out how to use CSR properly as part of their employee engagement efforts. They fall short of communicating their CSR intentions and initiatives to their employees and tend to keep CSR decisions in the hands of senior managers. At the same time, they fail to understand which CSR initiatives work best to excite which groups of employees. All in all, they fail to capture CSR's considerable potential to help them fight the war for talent. When used properly, CSR can strengthen employees' engagement by creating the feeling that they are part of a larger corporate mission and that the company shares their values, and by helping them enhance their own social connections. This article draws on recent studies to confirm that CSR can yield substantial returns for both employees and the company. The research demonstrates that CSR initiatives can fulfill employees' needs and motivate them to identify strongly with their employers, as is very much the case at The Timberland Co. Using frequent verbatims from study participants, the article portrays the challenges that companies face in making the most of their CSR strategies internally. The authors then recommend five practical steps that can help business leaders increase CSR's effectiveness as a lever for talent management, acquisition, and retention.

Although companies are devoting significant resources to corporate social responsibility (CSR) initiatives, insights into the optimal formulation, implementation, and effectiveness estimation of CSR strategies are currently scarce. Takes an in-depth look at when, why, and how CSR works from a consumer's perspective. In contrast to the simple, monotonic relationships between CSR and consumer purchase behavior evident in marketplace polls, this article proposes a more complex, contingent model of consumer responses to CSR. Articulates both the internal outcomes (e.g., awareness, attitudes, attachment) and external outcomes (e.g., word of mouth, purchase, loyalty) of CSR initiatives for not just the company, but also the consumer and the CSR issue/cause. Delineates the key factors that are likely to moderate the extent to which the inputs lead to the internal outcomes and the internal outcomes lead to the external ones. This framework can help guide companies in formulating and implementing their CSR initiatives as well as measuring the effectiveness of these initiatives.