When Taking a Stand Pays Off: How Brand Activism Impacts Consumer Loyalty

Sustainable Development Goals

12. Responsible Consumption and Production
16. Peace, Justice and Strong Institutions

Posted on 12 Nov 2025
Diversity and inclusion LGBTQIA+ rights

In a crowded marketplace heavily driven by social media, brands are increasingly finding ways to distinguish themselves. As younger consumers place growing emphasis on brand values, businesses are taking up activism by engaging in social and political issues, ranging from LGBTQ+ rights to immigration. But does brand activism result in customer loyalty and influence sales? This research investigates the relationship between brand values, consumer attitudes, and authentic engagement.

The challenge

While brand activism is growing in popularity among businesses, it carries both opportunities and risks. Previous findings have produced mixed results: some brands experience increased customer loyalty, while others reveal instances of consumer backlash. This research sought to clarify inconsistencies around consumer attitudes towards brand activism, by identifying the conditions where activism helps or hurts brands, especially in terms of consumer attitudes and willingness to pay.

The solution

Drawing on data from more than 1,000 US consumers, researchers from the UTS business school and UNSW explored how brand activism strengthens or harms a brand’s image. The research examined how political alignment and brand authenticity influence consumer responses and willingness to pay.

The findings were clear: consumers respond most positively when a brand’s stance aligns with their own political beliefs, whether liberal or conservative. If the stance taken up by a brand is perceived as lacking in authenticity or is inconsistent with the brand’s identity, support quickly diminishes. Brands that are seen as ‘woke-washing’ or opportunistic further risk significant consumer backlash and diminished loyalty.

Outcome and impact

Given the potential to influence consumer sentiment, sales, and brand perception, companies considering activism as part of their identity and communications strategy are now better informed. This research highlights the need for brands to strategically evaluate the ideological makeup of their consumer base and ensure the authenticity of their activism. When brand values and consumer beliefs are clearly aligned and communicated, activism can enhance loyalty and increase market value. Whereas poorly executed activism can alienate consumers and damage long-term brand perception.