The stakeholders are selfish egoistsEconomic boycott has some costs. Would a rational stakeholder decide to bear them? The strategy is Moral Persuasion.
Indirect Business Punishment Sullivan and “Selective Patronage”
Leon Sullivan was an Afro-American priest. He finished a religious school and in 1950 he became the minister of Zion Baptist Church in Philadelphia.
In 1958 he started the selective patronage practice and invented the slogan ”Do not buy where you do not work”.
He organized 400 black ministers in Philadelphia which easily announced boycott of a company or a store which refused to give jobs to black people.
Storchevoy M. A. Corporate Social Responsibility. 2013
Indirect Business Punishment The problem of Apartheid in South Africa
About 300 American companies had operations in South Africa.
In the beginning of the 1970s In 1972 five Protestant denominations demanded that US companies to withdraw their business operations from South Africa because of apartheid.
This pressure was very hard and corporation has to do something with this. Withdrawing was very expensive and they had to seek a compromise.
Storchevoy M. A. Corporate Social Responsibility. 2013
Indirect Business Punishment
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