Abstract
Business leaders today function as powerful symbolic figures whose sociopolitical stances can transform consumer loyalty, investor confidence, and organizational stability. This study decodes how stakeholders interpret executive actions and respond through behaviors such as boycotts, divestment, or heightened advocacy, highlighting both short and long-term consequences. Drawing on signaling, stakeholder, social identity, social influence, intrinsic motivation, and reputational risk theoretical frameworks, this study develops a four-stage interpretive model that links leadership behavior to stakeholder perceptions, reactions, and market outcomes within varying contextual and environmental conditions. Through a case-based analysis, it illustrates how CEO stance, media framing, and ideological alignment shape these responses. By specifying the mechanisms of compliance, identification, internalization, and intrinsic motivation, this research advances marketing theory and practice in a meaningful way. Findings underscore the strategic importance of managing leadership visibility and aligning brand narratives with stakeholder values in an era of heightened sociopolitical sensitivity.
Copyright
This work is archived and distributed under the repository's standard copyright and reuse license, available here. Under this license, end-users may copy, store, and distribute this work without restriction. For questions related to additional reuse of this work, please contact the copyright owner.
Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.
DOI
10.20429/jamt.2025.120204
Publication Date
12-2025
First Page
53
Last Page
76
Recommended Citation
Naseem, N., Wang, Y., & Moin, F. (2025). Decoding The Dynamics of CEO Sociopolitical Activism and Stakeholders’ Response. Journal of Applied Marketing Theory, 12(2), 53-76. ISSN: 2151-3236.