Best of frenemies: How to get ESG activists on side

Companies and activists often disagree on major issues, but collaborations between the two are critical to meeting grand societal challenges. Here’s how to resolve conflict and win support.

1. Seek out partners before it’s too late

To avoid public disputes that could damage your reputation, get ahead of the curve and form collaborations with activist groups before their ire is trained on you. 
Choose partners that have complementary expertise in areas where your firm may be lacking.

2. Choose recognizable brands to boost credibility

Collaborating with prominent non-profit organizations with expertise in ESG issues can help your firm overcome negative perceptions: your partner’s recognizable brand gives you greater credibility.
Don’t be afraid to choose groups that are openly critical of your industry’s practices – it sends a stronger signal that you are listening and willing to address ESG issues.
However, beware that supporters of more radical groups are less forgiving of private-sector collaborations and often refuse corporate donations and collaborations to preserve their reputation.

3. Build a mutually beneficial relationship

In convincing activists to work with rather than against you, it’s important to build a symbiotic relationship. 
It’s also key to improve trust and understanding between both parties by learning from one another, sharing information, and being transparent.

4. Stress that this is a win-win game

In your communications with partners, stress that, because of the massive environmental, social, and economic footprints of a multinational corporation, you have the potential to effect significant positive change in society: activists can tap into your firm’s market power and visibility and ultimately shape responsible business practices.
Activists can also work within your company to better understand your business model, and help come up with solutions that, while delivering societal benefits, are also commercially viable.

Key learning

The problems facing society today are too complex to be solved by any one institution or sector. What is needed are close relationships beyond philanthropy that involve the commitment of resources by multiple parties to tackle issues at a deeper level. Such ties can reap benefits for businesses and wider society.

This content is based on the Responsible Research in Business & Management award-winning research article Frenemies: Overcoming Audiences’ Ideological Opposition to Firm-Activist Collaborations, published in Administrative Science Quarterly.

Kate Odziemkowska

Assistant Professor of Strategic Management at the Rotman School of Management, University of Toronto

Kate Odziemkowska is an Assistant Professor of Strategic Management at the Rotman School of Management, University of Toronto. She received her PhD from The Wharton School, University of Pennsylvania. Her research focuses on nonmarket strategy with particular emphasis on firms’ formal collaborations and contracts with nonmarket stakeholders (e.g. activists, social movement organizations, and local communities).