Podcasts > Stuff You Should Know > How Boycotts Work (Or Do They?)

How Boycotts Work (Or Do They?)

By iHeartPodcasts

In this episode of Stuff You Should Know, the hosts explore the mechanics and effectiveness of boycotts as a tool for social change. From the origin of the term in 1879 Ireland to modern social media campaigns, they examine how boycotts have evolved and what makes them successful, including the need for specific goals and the ability to impact a company's core customer base.

Through historical examples like the Montgomery Bus Boycott and the campaign against South African apartheid, the hosts illustrate how boycotts have contributed to significant social and political changes. They also analyze how social media has transformed modern boycotts, making them more common but potentially less focused, and discuss how companies navigate consumer reactions that can lead to both boycotts and "buycotts."

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How Boycotts Work (Or Do They?)

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How Boycotts Work (Or Do They?)

1-Page Summary

The History and Origins of Boycotts

The term "boycott" originated in 1879 Ireland, named after Charles Boycott, a British rent collector who faced organized resistance from Irish tenant farmers. When Boycott strictly enforced rent collection during a famine, the Land League initiated a harassment campaign that made it impossible for him to operate his farm. The tactic proved so effective that within a year, over 1,000 similar boycotts occurred across Ireland.

Before the term was coined, similar protest strategies were used against British colonial rule. American colonists successfully employed boycotts against the 1765 Stamp Act and 1767 Townsend Revenue Act. Quaker abolitionists also used boycotts as a moral stance against slavery by refusing to purchase goods made by enslaved people.

Factors That Contribute To a Successful Boycott

For a boycott to be effective, it needs a specific goal and must target a company's core customers. The availability of substitute products can significantly increase a boycott's impact, as demonstrated by the Bud Light boycott, which led to a 28% drop in sales as customers easily switched to alternative beers.

Financial impact is crucial for success. For example, when North Carolina faced boycotts over a controversial bill, the collective actions of companies like PayPal, entertainers, and sports organizations cost the state $3.76 billion in a year, ultimately leading to the bill's repeal.

Examples of Successful Boycotts Throughout History

The Montgomery Bus Boycott demonstrated the power of community organization and dedication. The black community organized extensive carpools and shoe drives during the 382-day protest, which ultimately led to the Supreme Court ruling against bus segregation.

The international boycott against South African apartheid showed how multiple forms of pressure could create change. Starting with a call from ANC President Albert Luthuli in 1959, the movement grew to include sports organizations, cultural entities, and economic sanctions. Student activism across 150 US colleges helped push for divestment from South African companies, contributing to the eventual dismantling of apartheid.

The Impact of Social Media on Modern Boycotts

Chuck Bryant and Josh Clark discuss how social media has transformed boycotts, making them more frequent but often less organized. While social media can amplify campaigns quickly, Bryant suggests that many modern boycotts lack the focus and dedication needed for lasting impact. For example, the Goya boycott resulted in a temporary 22% sales increase that eventually leveled out.

The hosts emphasize that successful boycotts still require more than just online engagement. Companies must carefully consider their stance on social issues, as consumer reactions can lead to both boycotts and "buycotts," significantly affecting their brand image and customer loyalty.

1-Page Summary

Additional Materials

Clarifications

  • The Land League was an Irish political organization founded in 1879 to help tenant farmers fight for fair rents and land rights. It played a significant role in organizing resistance against landlords like Charles Boycott, advocating for agrarian reform and fair treatment of farmers. The League used tactics like boycotts and protests to challenge unfair land practices and improve the conditions of Irish tenant farmers. Its efforts contributed to social and political changes in Ireland during the late 19th century.
  • The 1765 Stamp Act was a British law that imposed a direct tax on the American colonies, requiring them to use stamped paper for legal documents, newspapers, and other printed materials. The act was met with strong opposition from the colonists, who argued that it violated their rights as British subjects. The 1767 Townsend Revenue Act was another taxation measure by Britain, imposing duties on various goods imported to the colonies, leading to further discontent and resistance among the colonists. These acts played significant roles in escalating tensions between the American colonies and Britain, ultimately contributing to the outbreak of the American Revolutionary War.
  • The Bud Light boycott in 2023 was sparked by a social media promotion involving a transgender influencer, leading to backlash from conservative groups. This boycott resulted in a notable decline in Bud Light's sales and impacted the stock price of its parent company, Anheuser-Busch. The controversy highlighted the intersection of social issues, corporate marketing decisions, and consumer reactions in today's society.
  • The Montgomery Bus Boycott was a pivotal protest against racial segregation on public buses in Montgomery, Alabama, sparked by Rosa Parks' arrest for refusing to give up her seat to a white person. Lasting over a year, the boycott showcased the power of community unity and nonviolent resistance in the civil rights movement. It culminated in a Supreme Court ruling that deemed bus segregation laws unconstitutional, marking a significant victory for the fight against racial discrimination. The boycott's success inspired further civil rights activism and propelled leaders like Martin Luther King Jr. to the forefront of the movement.
  • Albert Luthuli was a prominent figure in the fight against apartheid in South Africa. He was the President of the African National Congress (ANC) from 1952 to 1967 and was the first African to be awarded the Nobel Peace Prize in 1960 for his non-violent struggle against racial discrimination. Luthuli's leadership and advocacy played a significant role in mobilizing international support and solidarity for the anti-apartheid movement. His commitment to peaceful resistance and equality inspired many in the struggle for freedom and justice in South Africa.
  • The Goya boycott referred to a situation where there was a call to boycott Goya Foods, a prominent American food producer and distributor, due to controversial statements made by its CEO. This boycott led to a temporary increase in sales followed by a leveling out, showcasing the complex dynamics of consumer activism and brand loyalty in the modern era.
  • A "buycott" is a form of consumer activism where people intentionally support a business or product to reward socially responsible behavior or practices. It is the opposite of a boycott, where consumers avoid purchasing from a company due to ethical concerns. Buycotts aim to incentivize positive change by encouraging increased sales for businesses that align with the values or causes important to consumers. Carrotmob is an example of an organization that facilitates buycotts by mobilizing communities to collectively support businesses that demonstrate commitment to social responsibility.

Counterarguments

  • While the text suggests that effective boycotts require targeting a company's core customers, it's also true that influencing public opinion and stakeholders can be equally important, even if they are not the primary customer base.
  • The financial impact mentioned in the North Carolina boycott is significant, but it's worth noting that the long-term economic effects of boycotts can be complex and may not always be as straightforward as short-term losses.
  • The success of the Montgomery Bus Boycott and the anti-apartheid movement is highlighted, but it's important to acknowledge that such outcomes also depend on broader socio-political contexts and may not be solely attributable to the boycotts themselves.
  • The text implies that modern boycotts often lack focus and dedication, but there are examples where modern boycotts have been successful and well-organized, suggesting that the effectiveness of a boycott is not necessarily tied to the era in which it occurs.
  • The role of social media in boycotts is portrayed as a double-edged sword; however, it's possible that the rapid spread of information on social media can sometimes lead to more effective and swift responses from companies and policymakers.
  • The idea that companies must carefully consider their stance on social issues to avoid boycotts suggests a reactive approach, but an alternative view could be that companies should proactively engage with social issues as part of their corporate responsibility, regardless of the threat of boycotts.

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How Boycotts Work (Or Do They?)

The History and Origins of Boycotts

The concept of a boycott has been a tool for protest throughout history, with origins tracing back to colonial protests against British rule, even before the term itself was coined in Ireland in the late 19th century.

First Boycott: 1879, County Mayo, Ireland, Against Charles Boycott, a Rent Collector for British Landlords

In 1879, Charles Boycott, an Englishman and rent collector for British landlords, faced a protest campaign that gave birth to the term we now know as "boycott." During this period of hardship caused by famine, Boycott was known for his strict enforcement of rent collection, which often resulted in the eviction of tenant farmers who could not pay. Reacting to these tough measures, Irish tenant farmers formed the Land League to contend with unfair rents and prevent further evictions.

Harassment Campaign Ruins Boycott, Term "Boycott" Coined

The Land League members initiated a harassment campaign against Boycott, threatening his workers and socially ostracizing him, which made it impossible for him to have his farm tended or his crops harvested. Despite efforts by British newspapers to raise funds to hire Northern Irish loyalists, protected by troops to harvest Boycott's crops, the cost and effort were ineffective. Boycott left Ireland in disgrace, and the term "boycott" was coined by Father O'Malley, who suggested the same tactic be used against another landlord.

Boycotts Rapidly Spread; Over 1,000 Occurred In Ireland Within a Year

The method of protest proved highly effective, and within a year, more than a thousand similar boycotts took place in Ireland, sending a powerful message against British governance. These actions were part of a broader tool for colonial protest that sparked from earlier instances, such as those against the British acts in America.

Boycotts: A Tool for Colonial Protest Against British Rule

Before the invention of the term "boycott," there were effective boycotts in the colonial era. Notable among them was the reaction to the 1765 Stamp Act, which saw Boston and New York merchants cease importing British goods, ultimately leadi ...

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The History and Origins of Boycotts

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Actionables

  • You can research the supply chains of your favorite products to ensure they align with your ethical standards. By understanding where and how products are made, you can make informed decisions to support companies that engage in fair labor practices and environmentally sustainable methods, similar to how the Quaker abolitionists avoided goods made by enslaved people.
  • Start a blog or social media page dedicated to raising awareness about the impact of consumer choices. Share stories of successful boycotts, highlight ethical alternatives to popular products, and provide tips for others to join in collective actions that promote social justice, drawing inspiration from historical examples of boycotts as tools for change.
  • Create a ...

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How Boycotts Work (Or Do They?)

Factors That Contribute To a Successful Boycott

A successful boycott involves a clear and specific goal and reaching the core customers of the target entity. The discussion also reveals that the availability of substitutes can notably increase the effectiveness of a boycott.

Boycotts Need a Specific Goal, Like Pressuring a Company to Change a Policy

Boycotts Are More Effective When Targeting a Specific Entity

For a boycott to be truly effective, it needs to have a specific goal or desired outcome, such as forcing a company to change a particular policy or practice. It's necessary for the boycott to focus narrowly, targeting a single company or a specific product, rather than a broad industry or multipronged issue.

Awareness and Education Are Crucial for Support

To gain traction, a boycott requires widespread awareness and education to garner the necessary support for it to truly influence the company in question.

Boycotts Must Reach the Core Customers to Impact the Bottom Line

Substitutability Increases the Effectiveness of a Boycott

The substitutability of the targeted product or service can significantly strengthen the impact of a boycott. In the case of Bud Light, the brand's sales suffered a 28% drop, and they fell from the top-selling beer in the U.S. to third place within weeks because customers could easily switch to similar beers like Coors Light, Miller Light, or Modelo Especial.

Effective Boycotts Prompt Financial Response

For a boycott to be considered successful, it must noticeably affect the company’s financial status, either through a direct impact on sales or stock prices. This was evident in the case of North Carolina's controversial bill, which led to PayPal canceling plans ...

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Factors That Contribute To a Successful Boycott

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Clarifications

  • In the context of boycotts, substitutability means the ease with which consumers can switch from the boycotted product or service to alternatives. When consumers have readily available substitutes, such as similar products from competing brands, the impact of a boycott can be more significant. This ease of substitution can lead to a faster and more pronounced effect on the targeted company's sales or market share. The availability of substitutes can influence consumer behavior and the success of a boycott campaign.
  • The example of Bud Light's sales drop illustrates how a boycott can significantly impact a company's revenue. In this case, Bud Light's sales declined by 28% due to customers switching to similar beer brands. The sustained financial impact was seen with an overall sales decline of 32% eight months after the boycott began. This demonstrates how a boycott, especially when a substitute is readily available, can lead to a notable shift in consumer behavior and financial outcomes.
  • North Carolina's controversial bill mentioned in the text is commonly understood to be House Bill 2 (HB2), also known as the "Bathroom Bill." This legislation, enacted in 2016, required individuals to use public bathrooms that corresponded with the sex on their birth certificates, sparking significant backlash for its perceived discrimination against transgender individuals. The boycott actions referenced involved various entities, such as businesse ...

Counterarguments

  • Specific goals may not always be necessary if the boycott aims to raise awareness on a broader issue rather than enforce a specific change.
  • Targeting a specific entity could be less effective if the issue is systemic and requires industry-wide or cultural changes.
  • Awareness and education might not be sufficient if there is not a concurrent, actionable plan that supporters can engage with.
  • Reaching core customers is important, but peripheral stakeholders, such as investors or suppliers, can also be influential in a successful boycott.
  • Substitutability might not always increase effectivenes ...

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How Boycotts Work (Or Do They?)

Examples of Successful Boycotts Throughout History

Boycotts have played a significant role in advancing civil rights and social justice by leveraging the power of collective action and economic pressure. Two of the most historically significant boycotts are the Montgomery Bus Boycott and the boycotts against South Africa's apartheid.

Montgomery Bus Boycott Led To Transportation Desegregation

One of the first American civil rights groups to use boycott strategies were the Quaker abolitionists with the Free Produce Movement. But it was the Montgomery Bus Boycott that served as a striking example of a successful boycott, which led to transportation desegregation.

Montgomery Black Community Organized Carpools to Avoid Segregated Buses

The black community in Montgomery demonstrated exceptional solidarity and resourcefulness during the boycott of the city's bus system. Black taxi drivers charged passengers the same fare as the bus fare to support the cause. Volunteers organized extensive carpools, and there were shoe drives to provide fresh shoes for people who wore theirs out from walking as a form of protest.

Boycott's Success: Community Dedication, National Support, and Publicity

The dedication of the Montgomery black community was evident as the boycott lasted 382 days. It was this unwavering commitment, combined with national support and widespread publicity, that led to the Supreme Court ruling that segregation on buses was unconstitutional.

Boycott Against Apartheid Key to Dismantling System

Apartheid, South Africa's legal system of segregation, faced international condemnation and was ultimately dismantled thanks in part to widespread boycotts, sanctions, and divestment.

Isolation of South Africa Through Sports, Cultural Boycotts, and Economic Sanctions

In 1959, ANC President Albert Luthuli called on Great Britain to boycott South African produce. This call for action snowballed and led to significant measures taken by sports organizations and cultural entities. International pressure further increased after the UN urged nations to sever ties with South Africa in 1962.

The first sports organization to cut ties with South Africa was the International Table Tennis Federation in 1956. The International Olympic Committee followed suit in 1964 by banning South African teams from the Olympics. This exclusion continued until 1992. Moreover, Britain saw boycotts and protests, such as the "battle for Swansea," which drew international attention to the issue.

Student Activism & Divestment Shaped Anti-Apartheid Movement

The influ ...

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Examples of Successful Boycotts Throughout History

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Actionables

  • You can research current social justice movements and identify products or companies they target for boycotts to align your purchasing habits with your values. By doing so, you're actively participating in a collective effort to bring about change, similar to historical boycotts. For example, if there's a movement advocating for fair labor practices, you might choose to buy from companies that are certified for ethical labor standards.
  • Start a conversation with friends or family about the power of collective action and how it can lead to significant changes. This can be as simple as sharing stories of successful boycotts over dinner, which can inspire others to think critically about their consumer choices and the impact they have on broader societal issues.
  • Engage with local community g ...

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How Boycotts Work (Or Do They?)

The Impact of Social Media on Modern Boycotts

Social media's influence has redefined the structure and reach of boycotts, requiring companies to weigh in their political or social stances given the immediate consumer reactions that can harm or propel their brand.

Social Media Facilitates More Frequent yet Less Organized Boycotts

Chuck Bryant and Josh Clark discuss that in the current social media landscape, boycotts often lack the necessary focus and dedication to impact targets.

Social Media Boycotts Often Lack Focus and Participation to Impact Targets

With the rise of social media, boycotts can start impulsively, which can lead to poorly thought-out actions such as boycotting one product while continuing to purchase another from the same company. Bryant suggests that these boycotts might not be as thought-out because many smaller brands are owned by larger conglomerates. Furthermore, the disorganized nature of social media boycotts, driven by short attention spans, often results in a lack of the focus and participation needed to effectively make an impact.

Companies Should Weigh Political or Social Stances, as Reactions Can Cause Boycotts and "Buycotts" That Harm Their Brand

Social media has turned boycotts into a "spectator sport" where the progress and effectiveness of movements are publicly followed and reported. However, without dedicated participation, these boycotts may not have a lasting impact. Clark suggests that merely liking a tweet or momentarily abstaining from a product contributes to a complacency that undermines the effectiveness of boycotts. For instance, short-lived boycotts like the one Goya faced resulted in a 22% bump in sales that eventually leveled out as the new customers were not core patrons.

Social Media Can Amplify Campaigns, but Meaningful Change Needs Traditional Tactics Like Financial Impact and Dedicated Participation

Clark discusses the fact that companies like Nike experienced a "buycott" instead of a boycott when they supported Colin Kaepernick, leading to an increase in sales. Other companies that backtrack on social issues or have inconsistent stances across different regions can sustain damage to their image.

Boycotts Require Time and Effort Beyond Online Posts ...

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The Impact of Social Media on Modern Boycotts

Additional Materials

Clarifications

  • A "buycott" is a phenomenon where consumers actively support a company or brand by purchasing its products in response to a specific action or stance taken by the company. This is the opposite of a boycott, where consumers refrain from buying products to express disapproval. In the context of social media and activism, a buycott can occur when consumers rally behind a company that aligns with their values or takes a stand on a social or political issue. Buycotts can lead to increased sales and positive publicity for the company involved.
  • Goya faced a boycott after its CEO praised former President Trump, leading to calls for a boycott from some consumers. However, this boycott was short-lived as it was countered by a "buycott," where supporters of the CEO and the brand increased their purchases in solidarity. This phenomenon resulted in a temporary increase in sales for Goya, showcasing the complex dynamics that can occur during consumer activism movements.
  • Successful boycotts rely on core customers because these are the loyal consumers who have a strong connection to the brand and are more likely to ...

Counterarguments

  • Social media can also lead to more organized and focused boycotts when led by dedicated groups or individuals with a clear strategy.
  • Companies may find that taking a strong political or social stance can actually strengthen their brand among their target audience, even if it leads to boycotts from other groups.
  • Some boycotts, even if they appear disorganized, can raise awareness and eventually lead to more organized efforts and meaningful change.
  • The "spectator sport" aspect of social media boycotts can increase visibility and support for a cause, even if initial participation is low.
  • Social media activism, including likes and shares, can contribute to raising awareness and can be a starting point for more significant actions.
  • The temporary bump in sales from short-lived boycotts may still lead to long-term brand awareness and customer acquisition.
  • The success of a boycott is not solely dependent on financial impact and dedicated participation; raising awareness and changing public discourse can also be valuable outcomes.
  • Companies experiencing a "buycott" may also face long-term challenges if the initial support does not translate into sustained customer ...

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