Family Owner Social Political Activism: An Embeddedness Model

Conventional belief suggests that family owners should stay within the bounds of their family businesses, refraining from engaging in societal political discussions. However, an increasing number of family owners are challenging this notion by taking public stances on socially contentious issues. To explore this relatively uncharted yet significant trend, we introduce the Family Owner Sociopolitical Activism's Embeddedness Model. This model aims to enhance our understanding of the complex relationship between family owners and their environment, shedding light on three key factors that drive the emergence of sociopolitical activism among family owners: the family business system, global network connections, and the economic and sociopolitical contexts. Building upon the Stakeholder Alignment Theory, we highlight the crucial roles of CEO power, celebrity status, and introduce the significance of family owners' values and moral capacity in shaping the expression of sociopolitical activism. We focus on the Latin American context, where family businesses are deeply intertwined with their local communities and have a substantial impact on local development. Through a rigorous analysis of qualitative data derived from in-depth interviews with family business owners, our study offers valuable insights into both the potential benefits and challenges associated with family CEO sociopolitical activism. In doing so, we contribute to a nuanced understanding of how embeddedness relates to the emergence of sociopolitical activism among family owners.