{"title":"Corporate Boards with Street Smarts? How Diffuse Street Protests Indirectly Shape Corporate Governance","authors":"Muhan Zhang, Forrest Briscoe, Mark R. DesJardine","doi":"10.1177/00018392231199717","DOIUrl":null,"url":null,"abstract":"Though recent waves of large-scale street protests have not directly targeted the business sector, they can still represent a major development in a company’s external environment. Building on the literature on community embeddedness, this study extends activism-as-information theory to understand how and when companies respond to street protests that take place in their communities. We argue that for business leaders, the scale of protests serves as an information update regarding the changing relevance of the protested social issue in a community. Using data from 2017 to 2020 on Women’s March protests in the United States, we show that the scale of street protests in local communities is associated with the likelihood of subsequent female director appointments for corporations headquartered in those communities: larger-scale protests are associated with a higher likelihood of such appointments. Further, we show that this response to proximal protests is heightened for protests that occur in local communities least aligned with the protest movement and for companies least internally aligned with the protest goals. Our theory and findings extend research on social movements in markets, showing how and why organizations respond to diffuse community protests, and they enrich corporate governance research on the roles of communities and stakeholders in shaping board composition.","PeriodicalId":7203,"journal":{"name":"Administrative Science Quarterly","volume":"57 1","pages":"0"},"PeriodicalIF":8.3000,"publicationDate":"2023-10-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"1","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Administrative Science Quarterly","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/00018392231199717","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 1
Abstract
Though recent waves of large-scale street protests have not directly targeted the business sector, they can still represent a major development in a company’s external environment. Building on the literature on community embeddedness, this study extends activism-as-information theory to understand how and when companies respond to street protests that take place in their communities. We argue that for business leaders, the scale of protests serves as an information update regarding the changing relevance of the protested social issue in a community. Using data from 2017 to 2020 on Women’s March protests in the United States, we show that the scale of street protests in local communities is associated with the likelihood of subsequent female director appointments for corporations headquartered in those communities: larger-scale protests are associated with a higher likelihood of such appointments. Further, we show that this response to proximal protests is heightened for protests that occur in local communities least aligned with the protest movement and for companies least internally aligned with the protest goals. Our theory and findings extend research on social movements in markets, showing how and why organizations respond to diffuse community protests, and they enrich corporate governance research on the roles of communities and stakeholders in shaping board composition.
期刊介绍:
Administrative Science Quarterly, under the ownership and management of the Samuel Curtis Johnson Graduate School of Management at Cornell University, has consistently been a pioneer in organizational studies since the inception of the field. As a premier journal, it consistently features the finest theoretical and empirical papers derived from dissertations, along with the latest contributions from well-established scholars. Additionally, the journal showcases interdisciplinary work in organizational theory and offers insightful book reviews.