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EMAC 2024 Annual


Corporate Sociopolitical Debate Strategies and Customer Responses: The Mediator Strategy as Solution to the Corporate Activism Dilemma
(A2024-118330)

Published: May 28, 2024

AUTHORS

Janne Geertje Skamel, University of Augsburg; Michael Paul, University of Augsburg

ABSTRACT

Polarization on sociopolitical issues is rising globally. Companies are in a dilemma as participating in debates as an activist can alienate customers who disagree with the company’s stand and increase polarization, but as customers increasingly expect companies to take a stand, staying out of the debate can also have negative consequences. This research presents the mediator strategy as a strategic option for companies to participate in debates without increasing polarization. In four experimental studies, we examine the effects of the activist and mediator strategy on the polarization of customer responses, depending on customers’ stand in a debate (change vs. maintain status quo) and further moderating effects of source characteristics (e.g., spokesperson race and sex or past strategy) and identify perceived opportunism as underlying mechanism. The results help to understand sociopolitical debate strategies and their boundary conditions.