Boycotts in a Digital Age: How Much Change Do They Really Create?

Boycotts have long been a tool for consumers to express their disapproval of companies and push for change.¹ From the Montgomery bus boycotts during the Civil Rights era to recent campaigns against brands like Starbucks and Bud Light, the power of the purse has been wielded as a form of protest. 

But do boycotts still pack a punch in an age of social media outrage and fleeting attention spans?

A closer look shares that while boycotts can occasionally pressure companies in the short term, they rarely have a lasting financial impact. 

What Makes a Boycott Successful?

Boycotts work best with a clear, focused target and tangible demands. Historically, some of the most successful examples, like the Montgomery bus boycotts, combined focused economic pressure with other forms of activism to drive systemic change.

Over 90% of Black residents participated in the 381-day boycott, resulting in a significant revenue loss for the bus company (ref).

However, in today’s fast-paced news cycle, it’s challenging to maintain a boycott’s momentum and translate online outrage into offline action. Many boycotts fizzle out without making a major dent in sales. 

Companies can often wait them out, knowing that consumers’ habits are hard to break and that boycotters may not be their core customers.

The Power of Media Attention

While boycotts rarely devastate a company’s bottom line, they can still damage its reputation and force a public reckoning with consumer values. 

The most successful boycotts generate the most media coverage, typically targeting a single high-profile company. This negative publicity can lead to a greater fall in stock prices and pressure companies to change their behavior.

In an age of conscious consumerism, more people are voting with their wallets and supporting brands aligned with their ethics. Boycotts can force corporations to confront these ideals and consider their role in society beyond short-term profits. 

Even if the financial impact is limited, the threat of reputational damage can be a powerful motivator for change.

‘Buycotts’: Rewarding Ethical Companies

Some shoppers are shifting from reactively boycotting to proactively “buycotting” – consistently rewarding companies they believe are doing the right thing. 

By strategically applying positive and negative pressure, consumers can keep companies on their toes and incentivize good corporate citizenship.

However, not all consumers have the financial mobility to make purchases based solely on ethics rather than practicality.

Under a capitalist economy, companies are often rewarded for immoral practices, and lower-income people may be unable to afford political purchasing choices. 

Successful boycotts need to recognize and respect these accessibility barriers.

The Future of Consumer Activism

As activists on both sides of the political aisle target more companies, the impact of individual boycotts may become diluted. Consumers are bombarded with calls to action, and sustaining attention to the controversy has been difficult for a long time. 

Companies may start to “wait it out” rather than caving to demands.

However, this doesn’t mean consumer activism is futile. Boycotts should be one tool among many, coupled with other collective actions like raising awareness, contacting elected officials, and providing resources to affected communities. (ref)

No matter how small, every action contributes to a larger tide of progress. The key is to keep the pressure on from all angles.

Source:

1. Science Direct