XF-QWGI2Z9-E
Research / Academic Paper ACTIVE

The Rise of NGO Activism

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Abstract

Activist nongovernmental organizations (NGOs) increasingly oppose firms’ practices. We suggest this might be related to the vulnerability of public regulation to corporate influence. We examine a potentially harmful industrial project subject to regulatory approval. Under industry influence, the regulator may approve the project even though it is harmful. However, an NGO may oppose it. We characterize the circumstances under which NGO opposition occurs and under which it is socially beneficial. Our theory explains the role that NGOs have assumed in the last decades, and has implications for the social legitimacy of activism and the appropriate degree of transparency of industrial activities. (JEL D21, D74, D82, L31, L51)

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Document Metadata

Issuer
American Economic Association
Document Type
Research / Academic Paper
Publication Year
2019
Retrieved
5 May 2026
Source
www.aeaweb.org
Record ID
XFQWGI2Z9E
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