Corporate Social Counterpositioning: How Attributes of Social Issues Influence Competitive Response
Mohliver, A., Crilly, D., & Kaul, A. 2022. 'Corporate social counterpositioning: How attributes of social issues influence competitive response'. Strategic Management Journal forthcoming. https://doi.org/10.1002/smj.3461
Posted: 7 Feb 2019 Last revised: 20 Jan 2023
Date Written: September 30, 2022
Abstract
Whilst existing research generally assumes corporate social responsibility (CSR) is seen as universally positive, firms increasingly adopt practices, and take stands, on highly polarizing social
issues (e.g., gun-control, LGBTQ rights, abortion). To better understand this phenomenon, we develop a theory about when firms will emulate, ignore, or oppose each other's CSR efforts, based on attributes of the underlying social issue (its salience and polarization), the level of market competition, and the substantiveness of CSR. Our theory predicts several distinct equilibrium outcomes, including the potential for social counter-positioning, whereby rival firms take advantage of socio-political polarization to horizontally differentiate by taking opposing stances on a polarizing
issue. Counterpositioning is more likely when salience is high, but agreement is low, when markets are competitive, and when CSR is largely symbolic.
Keywords: Corporate Social Responsibility, Social Movements, Stakeholders, Competition, Social Issues, Polarization
JEL Classification: M14, D43, D21, D63, D64, D72
Suggested Citation: Suggested Citation