When Do Firms Speak Up? The Role of Empowered Knowledge Workers
P3-S54-2
Presented by: Luis Cornago Bonal
Large companies in the United States are increasingly vocal about progressive causes, such as gender and racial equality and climate change, but they are often politically cross-pressured. This article proposes a novel theory to explain when and why firms engage in corporate political speech on these issues, focusing on an economically influential segment of the workforce: knowledge economy winners. I argue that firms with homogeneously progressive workforces are more likely to take public stances on progressive causes, particularly during periods of labor market tightness. I test this hypothesis using a difference-in-differences design and linking Twitter data from S&P 500 companies with employee donation records from the Federal Election Commission (FEC) and firm-level data on employees and consumers from SafeGraph and People Data Labs. This pattern, however, is moderated by consumer ideology and their geographical distribution. These findings highlight how a politically realigned group of employees in advanced economies can reshape the public discourse of traditionally conservative, market-driven institutions.
Keywords: knowledge economy, employees, speech, progressive