Protest Politics in the Marketplace: Consumer Activism in the Corporate Age
()
About this ebook
Protest Politics in the Marketplace examines how social media has revolutionized the use and effectiveness of consumer activism. In her groundbreaking book, Caroline Heldman emphasizes that consumer activism is a democratizing force that improves political participation, self-governance, and the accountability of corporations and the government. She also investigates the use of these tactics by conservatives.
Heldman analyzes the democratic implications of boycotting, socially responsible investing, social media campaigns, and direct consumer actions, highlighting the ways in which such consumer activism serves as a countervailing force against corporate power in politics. In Protest Politics in the Marketplace, she blends democratic theory with data, historical analysis, and coverage of consumer campaigns for civil rights, environmental conservation, animal rights, gender justice, LGBT rights, and other causes. Using an inter-disciplinary approach applicable to political theorists and sociologists, Americanists, and scholars of business, the environment, and social movements, Heldman considers activism in the marketplace from the Boston Tea Party to the present. In doing so, she provides readers with a clearer understanding of the new, permanent environment of consumer activism in which they operate.
Related to Protest Politics in the Marketplace
Related ebooks
Visible Borders, Invisible Economies: Living Death in Latinx Narratives Rating: 0 out of 5 stars0 ratingsCivil Law in America: A Minimalist Law Book Rating: 0 out of 5 stars0 ratingsArizona Reporter's Handbook On Media Law Rating: 0 out of 5 stars0 ratingsStory Of Reo Joe: Work, Kin, And Community Rating: 5 out of 5 stars5/5The Gloog Revolution - "It's the Lawyers Stupid!": Get Lawyers Out of Government Rating: 0 out of 5 stars0 ratingsThe Complete Guide to Your First Rental Property A Step-by-Step Plan from the Experts Who Do It Every Day Rating: 0 out of 5 stars0 ratingsA Consumer’s Guide to Successfully Resolving Any Dispute Rating: 0 out of 5 stars0 ratingsEnlightened Regressivism Rating: 0 out of 5 stars0 ratingsDomestic fortress: Fear and the new home front Rating: 0 out of 5 stars0 ratingsRegulators Gone Wild: How the EPA is Ruining American Industry Rating: 0 out of 5 stars0 ratingsThe First World War Retold Rating: 0 out of 5 stars0 ratingsThe Irish in Manchester <i>c</i>.1750–1921: Resistance, adaptation and identity Rating: 0 out of 5 stars0 ratingsTaxation and Representation? Rating: 0 out of 5 stars0 ratingsA Secret Report to the True American Faith Society: Senior Citizens and Their Threat to America Rating: 0 out of 5 stars0 ratingsThe Sensation of Security: Private Guards and Social Order in Brazil Rating: 0 out of 5 stars0 ratingsSummary: The Original Argument: Review and Analysis of Glenn Beck's Book Rating: 0 out of 5 stars0 ratingsMagna Carta Rating: 0 out of 5 stars0 ratingsWhat Every Landlord Needs to Know: Time and Money-Saving Solutions to Your Most Annoying Problems Rating: 0 out of 5 stars0 ratingsBibb County, Alabama: The First Hundred Years Rating: 0 out of 5 stars0 ratingsA Long List of Everyday Guaranteed Rights Rating: 0 out of 5 stars0 ratingsU.S. Militarism, Corporate Interests and World War III: The Pentagon and CIA: Soldiers of the Corporatocracy Rating: 0 out of 5 stars0 ratingsFreedom Through Disobedience Rating: 0 out of 5 stars0 ratingsThe People's Money: How Voters Will Balance the Budget and Eliminate the Federal Debt Rating: 0 out of 5 stars0 ratingsWhat Consumers Need to Know About Buying Real Estate: What Consumers Need to Know, #2 Rating: 0 out of 5 stars0 ratingsThe Money Game Explained in a Poker Game Rating: 0 out of 5 stars0 ratingsGovernance in the New Global Disorder: Politics for a Post-Sovereign Society Rating: 3 out of 5 stars3/5Defining and Discussing Immigration Rating: 0 out of 5 stars0 ratingsSummary of Josh Hawley's The Tyranny of Big Tech Rating: 0 out of 5 stars0 ratingsSedition, Subversion, And Sabotage Field Manual No. 1: A Three Part Solution To The State Rating: 0 out of 5 stars0 ratingsFraudulent Intention$ Rating: 0 out of 5 stars0 ratings
Politics For You
Son of Hamas: A Gripping Account of Terror, Betrayal, Political Intrigue, and Unthinkable Choices Rating: 4 out of 5 stars4/5Gaza in Crisis: Reflections on the U.S.-Israeli War on the Palestinians Rating: 4 out of 5 stars4/5The Republic by Plato Rating: 4 out of 5 stars4/5The Real Anthony Fauci: Bill Gates, Big Pharma, and the Global War on Democracy and Public Health Rating: 4 out of 5 stars4/5A People's History of the United States Rating: 4 out of 5 stars4/5The Madness of Crowds: Gender, Race and Identity Rating: 4 out of 5 stars4/5The Devil's Chessboard: Allen Dulles, the CIA, and the Rise of America's Secret Government Rating: 5 out of 5 stars5/5Fear: Trump in the White House Rating: 4 out of 5 stars4/5Daily Stoic: A Daily Journal On Meditation, Stoicism, Wisdom and Philosophy to Improve Your Life Rating: 5 out of 5 stars5/5Capitalism and Freedom Rating: 4 out of 5 stars4/5The U.S. Constitution with The Declaration of Independence and The Articles of Confederation Rating: 5 out of 5 stars5/5The Gulag Archipelago [Volume 1]: An Experiment in Literary Investigation Rating: 4 out of 5 stars4/5The Parasitic Mind: How Infectious Ideas Are Killing Common Sense Rating: 4 out of 5 stars4/5On Palestine Rating: 4 out of 5 stars4/5How to Hide an Empire: A History of the Greater United States Rating: 4 out of 5 stars4/5The Cult of Trump: A Leading Cult Expert Explains How the President Uses Mind Control Rating: 3 out of 5 stars3/5The Great Reset: And the War for the World Rating: 4 out of 5 stars4/5This Is How They Tell Me the World Ends: The Cyberweapons Arms Race Rating: 4 out of 5 stars4/5Freedom Is a Constant Struggle: Ferguson, Palestine, and the Foundations of a Movement Rating: 4 out of 5 stars4/5Killing the SS: The Hunt for the Worst War Criminals in History Rating: 4 out of 5 stars4/5The Essential Chomsky Rating: 4 out of 5 stars4/5Ever Wonder Why?: And Other Controversial Essays Rating: 4 out of 5 stars4/5Why I’m No Longer Talking to White People About Race: The Sunday Times Bestseller Rating: 4 out of 5 stars4/5Closing of the American Mind Rating: 4 out of 5 stars4/5The Spook Who Sat by the Door Rating: 4 out of 5 stars4/5Unhumans: The Secret History of Communist Revolutions (and How to Crush Them) Rating: 3 out of 5 stars3/5The Anarchy: The East India Company, Corporate Violence, and the Pillage of an Empire Rating: 4 out of 5 stars4/5
Reviews for Protest Politics in the Marketplace
0 ratings0 reviews
Book preview
Protest Politics in the Marketplace - Caroline Heldman
PROTEST POLITICS IN THE MARKETPLACE
Consumer Activism in the Corporate Age
Caroline Heldman
CORNELL UNIVERSITY PRESS ITHACA AND LONDON
For Ian
The real power emerging today in democratic politics is just the mass of people who are crying out against the high cost of living.
That is a consumer’s cry. Far from being an impotent one, it is, I believe, destined to be stronger than the interests either of labor or of capital.
—Walter Lippmann, Drift and Mastery, 1914
Contents
List of Illustrations
Preface
List of Abbreviations
Introduction: Publicizing the Private Sector
1. A Consumer Revolution? Marketplace Activism since the Founding
2. We Are the 99%
: Contemporary Consumer Activism
3. We Are Not a Mascot
: Campaigns for Social and Economic Justice
4. 600,000 Bosses Telling Me What to Do
: Campaigns for the Environment and Animal Rights
5. Stop Serving Gay Chickens
: Campaigns for Gender Justice and Lesbian-Gay-Bisexual-Transgender Rights
6. "Yes to Jesus Christ, No to JC ": Campaigns for Conservative Causes
7. Who Rules? Corporate Power and Models of Democracy
Conclusion: Throwing Stones at Goliath
Notes
Index
Illustrations
1.1. Black residents walking, Montgomery Bus Boycott, 1955
1.2. Counter sit-in at an F. W. Woolworth store, Greensboro, North Carolina, 1960
2.1. Political engagement in the past year by Americans younger than thirty
2.2. Cause marketing in millions from 2004 to 2014
2.3. Dollars spent on responsible investing in millions from 1985 to 2015
2.4. Mentions of divestment in the New York Times from 2004 to 2014
3.1. Confederate flag outside the South Carolina statehouse, 2001
3.2. #BlackLivesMatter protest outside Macy’s, New York City, November 2014
4.1. Greenpeace spoof of a Kit Kat ad, 2010
4.2. Activist at a BP oil flood protest, Jackson Square, New Orleans, 2009
4.3. Annual dolphin slaughter, Taiji, Japan, 2011
5.1. Altered CoverGirl ad protesting the NFL response to domestic violence, 2014
5.2. National Same-Sex Kiss-In Day event, 2012
6.1. Sarah Silverman, comedian, displays her Jesus Dress Up! magnet set, 2009
6.2. The Kraft Let’s Get Zesty
ad, 2013
Preface
This book is the culmination of two decades of work on consumer activism that began at Rutgers University in 1998. I have been writing about and presenting on the subject since that time, and it is a glorious, humbling experience to return to early academic work with fresh eyes, to marry a more developed intellectual sensibility with my first academic love—consumer activism.
When I started, my focus was on how women used consumer activism as a tool when they lacked power through formal political channels. I soon discovered that so little had been written on the subject that a narrow emphasis on gender was not sufficient to fill the large gap in existing research, so I broadened the scope.
Business scholars, historians, and sociologists had already discovered
consumer activism, but I faced considerable resistance from political scientists who insisted that consumer activism was simply not political. As a consumer activist, I knew the political ramifications of this activity, and I sensed that it was becoming more important in the U.S. political landscape. I had chosen to study it because it was timely. Then, in 1999, the Battle in Seattle put consumer activism on the front page of the New York Times, and my battle to have consumer activism recognized as a political behavior became much easier.
In the intervening years, historians have published some first-rate books about U.S. consumer activism (e.g., Lizabeth Cohen, A Consumer’s Republic: The Politics of Mass Consumption in Postwar America; Matthew Hilton, Prosperity for All: Consumer Activism in an Era of Globalization; and especially Lawrence Glickman, Buying Power: A History of Consumer Activism in America), but political science has been slow to the subject. I no longer have to convince most of my colleagues that this behavior is political, but oddly enough this book is the first to study the political and democratic implications of contemporary consumer activism in the United States.
My interest in consumer activism started when I was fourteen years old. I spent the summer working as a janitor at the local high school in order to purchase a used Commodore 64 so I could waste my days playing video games, as well as improve the reach of my consumer activism. Using a list from an animal rights magazine, I put my computer to use writing letters to companies that tested their products on animals. I was home-schooled, so I had the luxury of writing dozens of letters each week shaming these companies and pledging to not purchase their products unless they stopped testing on animals. (Of course my parents thought my printer activity was related to schoolwork, not activism.) I did not have the language for what I was doing (boycotting), nor was I aware of the long history of consumer activism or the many other people who were also engaging in it. All I knew that was that I wanted these companies to stop testing their products on animals and that my threat to withhold purchasing might give me some leverage.
Since that time, I have been active in many consumer campaigns. My frequent use of consumer activism provides insights into both its effectiveness and limitations, and my experience and training in electoral politics allows me to situate it within the broader political context. I also approach this subject with a business degree and years of experience working in the private sector in firms that were occasionally targeted by consumer activists. At one company, I developed the response protocol to consumer activism, which made me acutely aware of the risk posed by the unpredictability of (sometimes irrational) consumer activists.
I bring my knowledge as a practitioner of consumer activism, a corporate officer, and a political scientist to bear on this project, as well as my deep and abiding passion for the subject. This book was a long time in the making, and after all these years, I am thrilled to share it with you.
I am grateful to many people who helped me along the way. I am indebted to Richard Lau at Rutgers University for his rigorous critiques and unremitting encouragement. Rick persistently nudged me over the years to publish my work on this subject, and his faith in the project made it happen. I am very thankful to Jane Junn for funding my initial data collection and to Susan Carroll, Kerry Haynie, and Benjamin Barber—all at Rutgers—for their invaluable feedback that shaped the direction of the book.
This book would not have been possible without the thoughtful guidance of my editor, Michael McGandy, who improved the manuscript at every step. Michael made the process a joyful one with his creative ideas and enthusiasm. Julie F. Nemer’s careful editing strengthened the manuscript, and Karen Hwa skillfully oversaw the revision process.
This book also benefitted greatly from reviewers. Lawrence Glickman offered keen insights on historical context and events that tremendously improved the project. I am indebted to him for furnishing the historical backbone of this book with his previous scholarship, and for investing the time to closely read my manuscript several times. Mark B. Brown was the first to suggest that I include a chapter on political theory, which I could not have done without his expertise and guidance on the subject. Andrew Murphy furnished helpful insights on political theory that took the project in new and necessary directions. Tony Barnstone was an early champion of the project who encouraged me to gather a decade of data to better understand patterns and trends. The contents of this book have also been shaped by students over the years. Rebecca Cooper, an Occidental College graduate, provided excellent editorial, formatting, and fact-checking assistance. Georgia Faye Hirsty, Erinn Carter, Clint Swift, and Sarah Oliver from Whittier College gathered background materials that enriched the book when they were undergraduates.
I am deeply grateful to Ian Breckenridge-Jackson for reading drafts and for managing the household while I worked long hours. In my absence, he managed to make all the cats love him more.
Abbreviations
Introduction
PUBLICIZING THE PRIVATE SECTOR
In 2011, inspired by the success of civil disobedience in Tahrir Square during the Arab Spring, Kalle Lasn and Micah White organized a protest in the financial district of New York City to kick off what would become known as Occupy Wall Street (OWS). As a longtime consumer activist, Lasn had organized the international Buy Nothing Day, which urged consumers to avoid shopping on the two days after Thanksgiving, as well as TV Turnoff Week, which encouraged families to disconnect from electronic devices for a week. ¹ OWS started with a humble encampment in Zuccotti Park and quickly grew into an organized community with about two hundred full-time occupants. It gained national recognition with the help of news coverage and the organizers’ use of new technology (e.g., live streaming video and social media). Using the slogan We are the 99%,
OWS protesters criticized preferential governmental treatment of Wall Street over Main Street during the financial meltdown and protested growing economic inequality as well as undue corporate influence in politics and policymaking. The movement did not accomplish concrete policy change, but it did shift media focus away from the travails of the banks to the suffering of everyday Americans during the financial crisis. ² At the height of the movement in October 2011, 59 percent of Americans said they agreed with the goals of the movement. ³
OWS is the highest profile campaign in the contemporary era of consumer activism—the eighth era in U.S. history. This era emerged in the mid-2000s and is distinct in its use of various types of consumer activism, the sheer volume of activities, transnational focus, ⁴ and its use of social media. Social media quickly spread news of OWS beyon dNew York City, and Occupy encampments sprang up in ninety-five cities across eighty-two countries. ⁵ Police closed Zuccotti Park and arrested over two hundred occupants in November 2011, and in the following two years, over 8,000 OWS protesters were arrested as they continued to stage protests and sit-ins at corporate headquarters, colleges and universities, banks, and board meetings. ⁶ Beyond direct action, the organizers called for a nationwide boycott of banks in response to new automated teller machine (ATM) fees, and they organized a Bank Transfer Day to get people to switch from their bank to a credit union. Over 75,000 people joined the Bank Transfer Day Facebook page, and credit unions saw their new-account traffic double. ⁷ OWS also used investment actions to achieve its goals. ⁸ The crowd-funding campaign Rolling Jubilee cancelled $15 million in consumer debt during its first year, and in 2012, OWS activists (and PNC Bank shareholders) attended the PNC Bank annual meeting to confront the 1 percent directly.
⁹ OWS epitomizes the face of new consumer activism campaigns in that it involved thousands of decentralized actions from grassroots activists.
The purpose of this book is to analyze the democratic implications of consumer activism in the United States, both historically and in the contemporary era. This is the first book dedicated to questions of democracy and consumer activism, and I approach it through both normative and empirical lenses. This book is also the most comprehensive study of consumer activism in the United States to date, covering case studies of sixty-one consumer campaigns from 2004 to 2014. It is the first book to systematically study consumer activism in the social media age.
What Is Consumer Activism?
People who study consumer activism define it in different ways. I define consumer activism as citizen actions directed toward business entities to explicitly influence the distribution of social goods or social values. This definition is drawn from research on political participation because my book concerns the democratic implications of these actions. By doing so, I reveal deficiencies in the established conceptions of both political participation and consumer activism. But first, I must define what I mean by politics and political participation.
Mark Warren urges scholars to define politics in ways that clarify our normative investment in questions of democracy. ¹⁰ My goal in this book is to expand measures of democratic health by including nonstate forms of political engagement; thus, my definition of politics is expansive. In a broad sense, politics is the rules and practices established by humans to organize their lives. David Easton defines politics as conflict resolution through the authoritative allocation of values
in society, whereas Harold Lasswell defines it as who gets what, when, how,
centering on resource allocation. ¹¹ These two halves of politics—resources allocation and societal value—tend to align. The resources held by a group (e.g., Latinxs, women, or the working class) generally correspond with its members’ sociopolitical standing because groups with higher social value are better able to extract resources from institutions. My definition of politics is the process of who gets what, when, and how in regard to societal resources and social value.
In terms of the how, scholars define politics as an exercise of power: a competition between people, groups, or states. ¹² Robert Dahl, a democratic theorist, describes power as a relation among people in which a person can get another person to do something he or she would not otherwise do through varying degrees of persuasion, ranging from the use of a rational argument to physical force. ¹³ Power lies with the state through its authority to set the rules and then enforce them. The power to allocate resources and social value also lies with other entities, such as mass media, educational institutions, religious organizations, and businesses. My definitions of politics and political participation encompass both state and nonstate institutions that have the power to influence resources and social values.
For most of its history, mainstream political science defined political participation as electoral participation. In their 1972 classic, Participation in America: Political Democracy and Social Equality, Sidney Verba and Norman Nie characterize it as those activities by private citizens that are more or less directly aimed at influencing the selection of government personnel and/or the actions they take.
¹⁴ To their credit, Verba and Nie also express interest in understanding broader attempts to influence the authoritative allocation of values for a society, which may or may not take place through governmental decisions,
but consider electoral actions to be a decent proxy measure for all political activities. ¹⁵ In their 1995 Voice and Equality: Civic Voluntarism in American Politics, the most comprehensive assessment of political participation in the United States to date, Verba, Kay Lehman Schlozman, and Harry E. Brady also define participation in narrow electoral terms, as actions that have the intent or effect of influencing government action—either directly by affecting the making or implementation of public policy or indirectly by influencing the selection of people who make those policies.
¹⁶
Electoral definitions of political participation assume that public policy is strictly a function of government. But we do not have to look very far to see that this is not the case. Corporations, churches, media organizations, and other politicized institutions are involved in both making and implementing public policy. For example, corporations influence elections through their contribution to political campaigns and interests, employee mobilization, and revolving doors. Corporations can also delay policy implementation through a variety of tactics such as foot-dragging, interpreting laws differently than intended, simply not abiding by policy guidelines, lengthy court actions, and relocating branches of the business to other countries to avoid compliance with U.S. laws.
Steven J. Rosenstone and John Mark Hansen provide a more inclusive definition of political participation as actions directed explicitly toward influencing the distribution of social goods and social values.
¹⁷ This definition encompasses all citizen actions that overtly aim to change public priorities and the way public resources are shared. For example, producing a documentary film that explicitly seeks to raise the social value of transgender people is an act of political participation, as is a neighborhood campaign to reallocate local funds for snow plowing to pothole repair.
I borrow from Rosenstone and Hansen’s definition of political participation and define consumer activism as citizen actions directed toward business entities to explicitly influence the distribution of social goods or social values. What makes these actions political, as opposed to just economic, is the end goal of affecting social goods and social values. ¹⁸ Social goods are shared public goods, such as clean water or tax dollars spent on public education. Social values are widely shared (largely unconscious) assumptions of what is important and right; guidelines for how individuals in a society arrange their priorities and make life choices. Most people have numerous interactions with business entities on a weekly basis, and although most of these interactions are not political, some are. For an action to be classified as consumer activism, its explicit aim must be to alter social goods or social values. The act can be individual or collective, as long as the end goal extends beyond personal interest to broader social interests.
My definition of consumer activism encompasses citizen action that targets the marketplace for political reasons as opposed to existing studies that center more narrowly on boycotting and buycotting (purchasing behavior that rewards companies for favorable practices or products). For example, Dietlind Stolle, Marc Hooghe, and Michele Micheletti define political consumerism as consumer choice of producers and products based on political or ethical considerations, or both.
¹⁹ Similarly, Micheletti and Stolle define political consumerism as the choice of producers and products with the aim of changing ethically or politically objectionable institutional or market practices.
²⁰ These definitions revolve around people’s decisions to consume (or not consume) particular products or services, whereas my definition revolves around the marketplace as the target for citizens who seek political change. Boycotting and buycotting remain the most popular types of consumer activism, but other tactics for altering business behavior that deserve attention have come to the fore in the past two decades, such as proposing an environmentally conscious shareholder resolution and occupying a business establishment to raise awareness of police brutality against black Americans. This book is the first to analyze the broader constellation of political actions in the marketplace. ²¹
In defining consumer activism, scholars disagree about whether to consider individual actions along with collective actions. Lawrence Glickman, a historian, emphasizes collective action in his definition of consumer activism as organized consumption, or, more often, nonconsumption that is collective, oriented toward the public sphere, grassroots, and conscious of the political impact of print or commerce.
²² He excludes individual actions, such as personal boycotts of stores or complaint letters to companies, because they lack the critical mass to influence business entities. I argue that most citizen actions, whether individual or collective, have limited impact on political outcomes, so effectiveness is not a useful criterion for inclusion. For example, one person’s vote does not decide an election, and an individual letter to a member of Congress has little or no effect on legislation, but political scientists still consider both of these actions to be political because of the intent behind them. Furthermore, contemporary consumer activism is marked by its use of social media campaigns, which blurs the line between individual and collective actions. It is difficult to determine whether a person who reposts information about a boycott to shame a polluting company is engaging in an individual act or sees herself as part of a larger collective campaign. Glickman acknowledges that the tradition of consumer activism is a political hybrid, then, taking many forms
and that contemporary consumer activism in the United States has evolved in new ways that require a broader definition to capture the complexity and richness of various tactics to hold businesses accountable beyond (non)consumption. ²³ I consider individual acts to be consumer activism, as long as the acts go beyond individual self-interest to social goods or social values.
Types of Consumer Activism
There are many different ways to approach the study of consumer activism. Most studies examine the behavior of individual consumers, an approach that fails to capture marketplace actions other than (non)consumption. Other studies look at consumer movements, a lens than overlooks individual actions. To develop a more complete typology of consumer activism, I opt for a third approach: analyzing tactics. Citizens use four primary tools to hold businesses politically accountable: (1) (non)purchasing actions, (2) investment actions, (3) social media actions, and (4) direct actions.
(Non)Purchasing Actions
The first form of consumer activism, (non)purchasing actions, comes in two forms: boycotts and buycotts. Boycotting is avoiding buying products from companies to harm their reputation and profit margin; buycotting is purchasing products from companies to reward their favorable practices or products (also called girlcotts, procotts, white listing, and reverse boycotts). ²⁴ The first recorded boycott took place in 617 CE in present-day Saudi Arabia, where two clans declared a boycott against a third clan to pressure it to withdraw its protection of a rival religious leader. ²⁵ This boycott was not effective, and it came to an end within three years. In the fourth century CE, Athens threatened to boycott the Olympic games in response to an athlete’s being fined for cheating. The threat was not successful in reversing the fine, and Athens did compete in the games that year. The next major recorded boycott effort took place a millennium later, initiated by colonists in the Boston Harbor, but it was another century before the term boycott was coined to describe these actions. The term boycott derives from 1880, when Irish peasants took action against Charles Cunningham Boycott, a British land agent. ²⁶ After a bad crop year, local villagers effectively used a boycott to pressure him into reducing rents to an affordable level. Today, boycott is synonymous with consumer activism.
One of the best-known boycotts in the last generation targeted Nestlé from the early 1970s through 1984 ²⁷ to halt company sales of infant formula in less industrialized nations after a string of infant deaths. The boycott of Nestlé involved nineteen countries and was ultimately successful in getting the company to provide better labeling information. Consumer activists also staged the Boston Nestlé Party, an environmentally questionable dump of Nestlé products into Boston Harbor. The Nestlé campaign sent a message to all global companies about the willingness of U.S. citizens to hold corporations responsible for their actions overseas. ²⁸ Activists also lobbied members of Congress, including Senator Ted Kennedy (D-MA), who publicly denounced Nestlé. ²⁹
Another classic boycott effort was a series of campaigns targeting U.S. companies doing business with South Africa with the goal of abolishing legal segregation (a.k.a. Apartheid) in the late 1980s. These efforts were led by a group of South African exiles living in London, and they quickly drew international attention and support from students, trade unions, and liberal political parties. Many U.S. companies halted their South African operations as a result of the boycott and divestment actions, including the Ford Motor Company and Apple Computers. ³⁰ With the combined pressure from the global boycott, economic sanctions from the United States and United Kingdom, and a United Nations denunciation of Apartheid, the system was abolished in 1994 with the adoption of a new constitution. The Nestlé and South African boycotts put companies on notice that moral pressure of this kind was becoming an increasingly important fact of business life.
³¹
The first U.S. buycott started in the 1820s with Free Produce Movement, which encouraged people to purchase products made by free labor instead of slave labor. The strategy of this buycott was to limit the demand for slave-made products as a way to reduce or eliminate slavery. In the modern era, companies partner with political or social causes (cause marketing) to enhance their reputation and encourage buycotting. Examples include eco-labeling and partnerships with sympathy-inspiring causes such as domestic violence or breast cancer. ³² Some brands adopt a socially conscious identity, such as Ben & Jerry’s Ice Cream (an assortment of liberal causes), The Body Shop (Fair Trade products and good labor practices), and TOMS shoes. Many Americans pay a premium to buy green, purchase organic products, buy Fair Trade, and purchase non-sweatshop-made products.
The most successful cause marketing campaign has been the Fair Trade Campaign, whose aim is to improve the environmental and working conditions of exporters in developing countries. Fair Trade products are one of the fastest growing global markets. ³³ Certifying organizations, such as FairTrade International and Eco-Social, ensure that coffee, tea, bananas, and other consumer products meet certain labor and environmental standards. Fair Trade has become a popular buycotting tactic for U.S. corporations in the past decade. ³⁴ Some national chains such as Starbucks and Whole Foods have become synonymous with Fair Trade products, and major supermarket chains throughout the United States offer Fair Trade items. Imports of Fair Trade products rose considerably in the past year, for example, coffee (32 percent), sugar (31 percent), cocoa (156 percent), produce (40 percent), and a slew of other products. ³⁵ Approximately 60,000 retail locations sell certified Fair Trade products in the United States ³⁶
Smartphone technology now enables more boycotting and buycotting. Consumers can now walk down the grocery aisle and check on the labor, environmental, and social record of the companies that produce products using smartphone applications such as GoodGuide and Go Green. These applications have great potential to influence purchasing decisions because nearly two-thirds of adults in the United States have a cell phone, and half of cell phone users own smart-phones with Internet access. ³⁷
Investment Actions
The second type of consumer activism entails investment actions: socially responsible investing, shareholder resolutions, and divestment. These actions attempt to bring about change by using preexisting mechanisms for shareholder input. Many social investment funds exist to cater to environmental, safety, health, labor, and other social justice concerns. For example, the Parnassus Fund invests in companies that have a track record of respect for their employees and the environment. The Green Century Equity Fund screens companies for environmental responsibility. Domini Social Investments excludes booze, butts and bets—alcohol, tobacco, and gambling stocks
and files shareholder resolutions on behalf of its clients. Amy Domini, the fund founder, couches her work in political terms when she states that global companies are more powerful than governments,
so consumers exercise political power through investing in ways they would not be able to through formal governmental channels. ³⁸
A second approach is shareholder resolutions that have come to play an important role in changing corporate actions around environmental, health, social justice, and workplace issues in the last decade. Politically oriented shareholder resolutions run the gamut of policy concerns. McDonald’s implemented a sexual orientation nondiscrimination policy as a result of an organized shareholder action; Ford Motor Company and Nike endorsed a ten-point code of conduct for environmental responsibility; and a coalition of shareholders successfully persuaded Mitsubishi to abandon plans for building a salt factory near a whale refuge in Mexico. ³⁹ K.B. Homes, one of the largest home builders in the nation, responded to shareholder pressure about energy efficiency, and by 2010, 90 percent of its new homes were Energy Star qualified. ⁴⁰ It is difficult to muster enough shareholder support to pass controversial resolutions, so some campaigns use media to get businesses to enact resolutions through public pressure. ⁴¹ For example, about a dozen major corporations, including Bank of America, were compelled to publicly acknowledge the growing gap between the rich and the poor in the United States in response to a popular but ultimately unsuccessful shareholder-resolution campaign to shine a spotlight on the pay ratio between company chief executive officers (CEOs) and their lowest-paid employees. McDonald’s stopped its use of Styrofoam containers because of a resolution from only 3 percent of its shareholders, and other fast-food restaurants followed suit. ⁴² Consumer activism has led to a more environmentally sound, industry-wide, de facto public policy without government regulation.
A third investment action is divestment, an organized group exodus of investors from a company or industry to protest its politics. In the 1980s, college students got hundreds of schools to sell their stock in companies that did business in South Africa under Apartheid. In the 1990s, students pressured their schools to pull investments from tobacco companies. Students today are urging schools to divest from the gun industry and from fossil fuels. ⁴³ Divestment campaigns are a way to act locally with global consequences.
Social Media Actions
The newest form of consumer activism is online. Since the launch of Facebook in 2004, YouTube in 2005, and Twitter in 2006, activists have powerful new communication tools to shame or reward companies for their political stances and actions. Corporations have adapted by hiring social media experts for cause marketing and to protect against online brand threats. Social media have taken consumer activism to a new level in the past decade by making it easier for organized marketplace campaigns to reach more people.
Blogs are another online tool used by activists. For example, the feminist blogosphere (Ms. Blog, Feministing, Feministe, Jezebel, and hundreds of individual bloggers) can bring immediate, intense, and widespread attention to companies that engage in sexist marketing practices. One example of the potential for speed and effectiveness of social media consumer activism is a 2011 action against clothing retailer Abercrombie & Fitch. In March 2011, a feminist blog posted a short criticism of the company for marketing push-up bikinis for girls as young as seven years old. Within hours, it had been reposted on other Internet sites over five hundred times. Within twenty-four hours, multiple major news outlets had run stories about the bikini, and within a week, Abercrombie & Fitch had pulled the product from its website and stores with the following statement on the official company Facebook page: We agree with those who say it is best ‘suited’ for girls age 12 and older.
⁴⁴ The new social media age has revolutionized the ease and frequency of market campaigns, and given the potential for damage to their reputation, firms can be compelled to respond quickly.
In addition to social media tools and blogs, there are also a handful of social action petition sites. Change.org, the most popular petition platform, was created in 2007 and now boasts 10 million members. ⁴⁵ They have had success with hundreds of consumer activism petitions. Change.org receives five hundred member-generated petitions a day, only a fraction of which gain traction, but those that do have the potential to change public conversation and policy. For example, in 2011, 175,000 people in 175 countries signed a Change.org petition compelling the South African parliament to create a task force to end corrective
lesbian rapes.
Social media are an especially effective tool for holding corporations accountable because they can do significant reputational damage. In his longitudinal analysis of boycotts, Monroe Friedman finds campaigns that harm the reputation of the business are more likely to get a response from the targeted business than campaigns that do economic damage. ⁴⁶ Naomi Klein also advocates the use of reputational damage as being important in holding corporations accountable for their behavior in her book No Logo. ⁴⁷ The unpredictable, viral nature of social media campaigns has made it bad business to ignore consumer campaigns, and major corporations now have dedicated staff to respond to market campaign threats.
Direct Actions
Direct consumer activism comes in many forms, such as protests, sit-ins, teach-ins, picket lines, and culture jamming (e.g., defacing a billboard to change the message). Consumer protests are a staple of the antisweatshop movement that gained traction on college campuses in the late 1990s. ⁴⁸ United Students against Sweatshops (USAS) has been at the forefront of continuous campaigns to force manufacturers to implement nonsweatshop employment practices. In 1999, students at Georgetown University staged an eighty-five-hour sit-in in the president’s office to force the negotiation of the procedures for the production of university apparel. Similar protests took place that year at the University of Wisconsin and Duke University in response to an economic war on the underpaid, overworked laborers who make the products that bear [university] logos.
⁴⁹ Nike responded to the protesters almost immediately by releasing a list of its manufacturing facilities and promising improvements. ⁵⁰
College apparel and footwear manufacturers have improved factory conditions as a result of direct consumer activism. ⁵¹ In 2009, USAS and students from nearly ninety universities achieved their biggest victory when they succeeded in getting Russell Athletics, the largest U.S. producer of sportswear, to rehire 1,200 employees in a Honduran factory. ⁵² Russell had closed the factory to shut down union organizing, and students