Social Movements, Risk Perceptions, and Economic Outcomes: The Effect of Primary and Secondary Stakeholder Activism on Firms’ Perceived Environmental Risk and Financial Performance

Reputational threats occur when stakeholders publicize organizational misdeeds and pressure the organization to rectify or take responsibility.

“Reputational threats can occur when stakeholders recognize organizational misdeeds and bring those actions to light in an effort to pressure the organization to rectify its actions or take responsibility for its transgressions”

Corporations have made significant investments in environmental initiatives and green products to differentiate themselves and signal environmental consciousness.

“they have made significant investments in environmental initiatives and green products to differentiate themselves from their competitors and to signal to the general public that they are environmentally conscious corporate citizens”

KLD evaluates firms' positive and negative CSR performance in areas such as community relations, diversity, employee relations, human rights, and controversial business practices.

“KLD rates a company's positive and negative CSR performance across several domains including community relations, diversity initiatives, employee relations, human rights initiatives, and socially controversial business practices(Vasi and King, 2012;Flammer, 2015).”

Proactive firms characterized by a progressive corporate culture often engage in socially responsible practices outside an environmental domain and may thus be less inclined to publicize their DJSI membership.

“proactive firms characterized by a progressive corporate culture (Vasi and King, 2012) often engage in socially responsible practices outside an environmental domain and may thus be less inclined to publicize their DJSI membership”