Engaging Employees in CEO Activism: The Role of Transparent Leadership Communication in Making a Social Impact

Abstract

With a survey of 600 U.S. employees, this study investigated the effect of transparent leadership communication on employee engagement, from the interpretivist approach, in the context of CEO activism. This study examined employees’ perceived psychological needs (i.e., autonomy, competence, and relatedness) as mediators. Results showed that transparent leadership communication is positively associated with employees’ psychological needs. In turn, employees’ psychological needs mediate the impact of transparent leadership communication on employees’ information sharing and activism participation intentions in a CEO activism campaign. Ultimately, this study discussed theoretical and managerial contributions.