When is Doing Good Not Good for Business?

When is Doing Good Not Good for Business?

As with any quantitative research study, the findings yielded some interesting insights and confirmed

that corporate social responsibility indeed could be a two-edged sword that attracts both positive and

negative attention from special interest groups. It also showed that environmental issues, above all

other issues tended to attract the most attention of these groups. It also showed that Nike and

Starbucks were indeed some of the favorite targets of the anti-globalization protestors. What is not

entirely clear from the results is why the protestors focus so much of their attention to these

companies.

There is no for sure answer, and the topic needs to be studied in greater depth. However, I proffered

two plausible explanations for the apparent paradox. One was the “low hanging fruit” explanation

which says that the reason that protest groups target high CSR companies such as Nike and Starbucks is

that they are the easiest ones to go after since they have already demonstrated a willingness to change

their behavior for the perceived betterment of environmental and social causes.

The second explanation had to do with the motivations of the company executives in relation to the

motivations of the interest groups that were applying pressure to the companies. In this explanation,

the protestors noted and exploited a “loose brick” by focusing a great deal of their energy on exerting

influence on these companies by making them feel uncomfortable. It is thought that the high level of

discomfort would lead to the desired action by the company executives in the direction intended by the

protest group influencers. In other words, by applying pressure, the influencers would count on the

company executives’ collective “cognitive dissonance” to get them to change their positions.

These two explanations may shed some light on why the protest groups seem to target some companies

more than others. Yet, based on the results of this study alone, there is no way to know for sure why

the protestors are so angry. This is a question that should be left for other researchers and theorists to

ponder.

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