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

See all articles by Aharon Mohliver

Aharon Mohliver

London Business School - Department of Strategy & Entrepreneurship

Donal Crilly

London Business School - Department of Strategic & International Management

Aseem Kaul

University of Minnesota - Minneapolis

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

Cohen Mohliver, Aharon and Crilly, Donal and Kaul, Aseem, Corporate Social Counterpositioning: How Attributes of Social Issues Influence Competitive Response (September 30, 2022). 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, Available at SSRN: https://ssrn.com/abstract=3322775 or http://dx.doi.org/10.2139/ssrn.3322775

Aharon Cohen Mohliver

London Business School - Department of Strategy & Entrepreneurship ( email )

Sussex Place
Regent's Park
London, London NW1 4SA
United Kingdom

Donal Crilly

London Business School - Department of Strategic & International Management ( email )

Sussex Place
Regent's Park
London, NW1 4SA
United Kingdom

Aseem Kaul (Contact Author)

University of Minnesota - Minneapolis ( email )

321, 19th Avenue S
3-412 Carlson School of Management
Minneapolis, MN 55455
United States

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