The phenomenon of a firm’s chief executive officer (CEO) engaging in sociopolitical activism has increasingly emerged in recent years as a significant subject of interest and controversy in both mainstream media and scholarly investigation. Such engagement, while frequently expected by stakeholders, is often fraught with risks for the firm and its leader. Through this article, we seek to advance stakeholder alignment theory, departing from traditional trait-based perspectives to focus on executives’ decision-making processes in sociopolitical contexts. This shift offers a nuanced exploration of executive actions, going beyond individual differences and providing a comprehensive understanding of the impact activism decisions have on different stakeholders. By offering practical guidance to executives facing this dynamic decision-making environment, our framework contributes to a deeper understanding of how CEOs translate their ideological stances into concrete actions, navigating complexities and trade-offs. We propose that the best stance for an executive to take is a highly conditional one, dependent on the alignment of the company’s mission and values and those of its most relevant stakeholders. We aim to contribute to a deeper understanding of the evolving role of CEOs in the sociopolitical landscape and provide a foundation for future research and practical guidance.
