A team of researchers at the University of Oklahoma have received $10,000 from a seed funding program led by the Data Institute for Societal Challenges to investigate the social and economic cost of brands that choose to stay silent on sociopolitical issu
Led by Pankhuri Malhotra, Ph.D., assistant professor of marketing in the the Michael F. Price College of Business, the research team is investigating whether and when it is wise for firms to engage in activism and when it is acceptable to “opt-out” of politics and remain silent on sociopolitical issues.
Previous research has shown that consumers are increasingly pressuring firms to take sides on hot-button sociopolitical issues such as racial justice, immigration, gun control, and LGBTQ rights. For example, consumers expressed their anger on social media platforms when Coca-Cola and Delta did not take a public stand on a restrictive voting bill in Georgia.
Malhotra said such instances reveal that firms “may no longer be able to safely ‘opt-out’ of participating in highly controversial social debates.”
In fact, a recent study by public relations firm Porter Novelli finds that 59% of Americans believe it is no longer acceptable for firms to remain silent and 49% assume that firms who remain silent simply do not care about the issue. According to Porter Novelli, “The message from a majority of Americans is clear: silence is no longer an option.”
"Our study helps inform managers about the financial consequences of staying silent by investigating consumer and investor reactions,” Malhotra said. “Importantly, we aim to help managers navigate a critical strategic dilemma whereby they may face negative financial consequences regardless of their decision to engage in activism.”
Since the beginning of 2022, DISC has provided funding for a total of 19 research projects and partnered with several other OU research centers and institutes to encourage the growth of the research enterprise. The seed funding program began in December 2020 to help incentivize transdisciplinary, convergent research teams focused on tackling grand challenges
“Providing seed funding to our OU researchers is crucial to help them start innovative projects to address societal challenges and collect preliminary results to compete for external funding,” said DISC Managing Director, Yessenia Torres.
Visit DISC’s website at ou.edu/disc to learn more about its monthly seed funding program.
