This dissertation focuses on three questions within non-market strategy---that is to say, at the intersection of business and politics.
Recently, companies have increasingly taken public stances on controversial political and social issues. While business has long sought to influence political policies in its own self-interest, this typically focused on economic issues with a direct connection to the financial bottom line---e.g., taxes, trade, and regulation---rather than contentious, morally-infused issues such as abortion, gun violence, LGBTQ rights, and racial (in)equality. In thinking about when and why companies may engage in this activism, I consider how stakeholders' influence may influence and constrain corporate decisions to engage on these issues. In this dissertation, the first two chapters focus consider employees, while the third focuses on customers.
The first chapter of this dissertation, "Office Parties: Partisan Sorting in the United States Labor Market'' (co-authored with Justin Frake and Reuben Hurst) I thank both Justin Frake and Reuben Hurst for their permission in allowing me to adapt this co-authored work for the purposes of this dissertation.} explores the extent of partisan sorting among employees in the United States. We create an original longitudinal dataset by merging voter registration data with with 17 million online employee profiles covering 14.5 million unique workers from 2012–2022. This represents the largest-ever dataset of this kind, with significantly larger (and less socioeconomically biased) coverage than other measures of employees' partisanship. Using these original data, we present four main findings. First, we find significant evidence that individuals are politically sorted across workplaces. Whereas prior work in political science has held up the workplace as an ideal locus of cross-partisan context, we find that the average Democratic worker's co-workers are about 15 percentage points more Democratic than the average Republicans co-workers, and vice versa. The extent of observed sorting is largely---but not entirely---associated with partisan sorting among metropolitan areas, industries, and occupations. Accounting for factors correlated with partisanship—geography, occupation, and industry—reduces this estimate to about 2 percentage points, which is similar in magnitude to our estimates of workplace sorting by gender and race. Second, we find that sorting appears more pronounced among workers who may have more labor market power (e.g., white workers, more senior workers, and workers in jobs which require more training) as well as workers who appear more politically engaged. Third, political sorting has increased among new joiners to firms since 2017. Fourth, because Democrats comprise a greater share of the workforce, sorting means that Republicans experience a significantly larger share of out-partisan co-workers.
The second chapter of this dissertation, "Do Conservative Social Policies Harm Access to Employee Talent? Evidence from the North Carolina Bathroom Bill, takes up a common rhetorical claim companies make to explain their decision to speak out on contentious socially issue. One common explanation for ``corporate sociopolitical activism" is that government policies can make it harder to attract talented employees, and so companies expose these policies which have the potential to harm their businesses. While these employee-centric justifications for CSA are widespread, there is limited evidence measuring whether these types of policies actually do have a negative impact on firms' ability to attract employees. This paper tests whether government policies do harm businesses by reducing their access to employee talent. I look at employee responses to North Carolina's 2016 HB2 law (the ``bathroom bill"), which prompted national attention and over 100 CEOs to argue that it would harm North Carolina's ability to attract workers. Using administrative data which cover 95% of U.S. employees, and the recently-developed Generalized Synthetic Control (GSC) technique (Xu 2017), I find no evidence that HB2 resulted in a decline in workers' in-migration to North Carolina or an increase in workers' out-migration from the state, meaning that the bill did not appear to reduce North Carolina employers' access to talent. This null finding is precisely estimated and holds both for overall in-migration and out-migration and there is no evidence of heterogeneity among young workers, college-educated workers, or workers in specific industries. I also rule out that this null result was driven by a compensating differential in wages for workers relocating to or from North Carolina or that it was the result of offsetting partisan shifts in migration patterns.
Finally, the third chapter, "This Bud's For You? The Effect of Partisan Political Cues on Politically Polarized Brands,'' investigates whether partisan cues can potentially unwind or attenuate already-polarized customer preferences. Real-world events and political cues can induce political polarization in consumption patterns. When politically-motivated customers find out that seemingly neutral or apolitical brands support a political party or take a political stance, they may respond by boycotting or “buycotting” the brand in question. To date, no research has explored what happens when customers receive a political cue about a brand that is not viewed as neutral or apolitical, but one which already has a polarized reputation. This survey experiment takes advantage of the recent conservative boycott of Bud Light following the brand’s partnership with a transgender social media influencer. Using the context of this (mostly) Republican boycott of Bud Light after the brand partnered with a transgender influencer, I find that partisan political cues likely constitute a one-way ratchet on polarized brand reputations. Republicans remain negatively disposed towards the brand even when told that Republican leaders (including President Trump) support the brand. I do that partisan cues can erode support for brands: When Democrats were told that fellow Democrats were boycotting Bud Light, they become less likely to select the brand in a choice-based conjoint task, and far more likely to report boycotting the brand. I also find that this polarization in expressed attitudes may not always be backed up with actual changes in economic behavior, as a significant portion of respondents who claim to be boycotting the brand give inconsistent survey responses which suggest they may not actually be boycotting.