Entitlement in the polity: Moral self-licensing and CEO activism

Abstract

This essay explores the phenomenon of CEO activism through the lens of moral self-licensing, offering a novel theoretical perspective on why CEOs engage in public and political discourse on complex issues outside their expertise. Prompted by observations of CEOs advocating controversial economic and political priorities, the study delves into the psychological rationale underlying such public assertions. It introduces the concept of moral self-licensing (MSL) to CEO activism, suggesting that CEOs’ past successes and societal status may grant them a perceived moral license to voice opinions in public debates. This provocative essay provides a fresh perspective on CEO activism, moving beyond analyzing its impact on stakeholders and organizations to examine the psychological reasons behind CEOs’ involvement in public and political discussions. Secondly, it proposes that CEOs’ past successes and societal status may endow them with a self-perceived moral license, leading to a sense of entitlement in their public engagements. Consequently, CEO activists might engage in the polity driven by entitlement while oversimplifying complex social issues due to their lack of specific knowledge. Their elevated status within neoliberal society, which contributes to their sense of moral self-licensing, may distort public debate and undermine the effectiveness of counter-narratives advanced by NGOs, experts, and watchdog groups. Therefore, a responsible approach to public discourse by business leaders is needed, and the study suggests further research into the interplay between CEO activism, moral self-licensing, and their socio-political impacts.