This paper presents a theory of self-regulation by a firm or an industry acting collectively in the context of private and public politics. In private politics an activist identifies a social issue, makes a demand on the firm, and threatens a harmful campaign. The firm self-regulates to...

Private politics social pressure is led by social activists who use confrontational and cooperative strategies to induce firms to provide social benefits. A confrontational activist demands that a firm change its practices and threatens a harmful campaign if it does not change. A cooperative...