15084: CEO-Director Political Ideology (In)Congruence and Its Influence on CSR Acti (session 25754)

Shareholder activism has evolved into a powerful mechanism for reshaping corporate governance and strategic direction, with corporate social responsibility (CSR) activism focusing on aligning firms with societal goals. While activists often target firms with CSR deficiencies, recent research highlights that activists also consider structural vulnerabilities, such as leadership dynamics, when selecting targets. This study explores how political (in)congruence between CEOs and boards signals strategic opportunities for activists. Using a longitudinal dataset of S&P 1500 firms, we examine the role of political alignment—or misalignment—between CEOs and boards in attracting CSR activism. Our findings show that political incongruence significantly increases the likelihood of activist intervention, with distinct effects based on the ideological configuration. This research contributes to understanding CSR activism by introducing ideological alignment as a critical factor in activist targeting. It also highlights the broader implications of leadership dynamics for corporate governance, providing actionable insights for firms anticipating activist engagement.

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