When business gets political:

For decades, companies were expected to remain politically neutral, focusing solely on profit-making and efficiency. However, in an increasingly mediatized and politically polarized world, some brands are now engaging with controversial socio-political issues through Corporate Political Advocacy (CPA). This growing trend raises critical questions about consumer reactions, especially as brands risk alienating stakeholders while gaining support from others. This thesis investigates how the perceived controversy of CPA influences consumers' brand attitudes and how this relationship is moderated by consumer alignment, including agreement with the issue, political ideology and age (Gen Z). Drawing on stakeholder theory, the study emphasizes the evolving field of CPA and the crucial role of value congruence between corporations and their key stakeholders. A quantitative online survey (N = 163) tested four hypotheses, with data analyzed using hierarchical regression in SPSS. Findings show that perceived controversy significantly and negatively affects brand attitudes, indicating that controversial CPA can harm consumer perceptions. Importantly, consumer agreement with the brand's position moderated this relationship and acted as a strong buffer, reducing the negative effects of perceived controversy. By contrast, political ideology and age did not significantly moderate the effect, suggesting that consumers' evaluations are shaped more by issue-specific value alignment than by broader demographic or ideological factors. Theoretically, this research contributes to the literature on CPA by highlighting the importance of consumer alignment in shaping brand attitudes. It supports moving beyond demographic segmentation towards a more nuanced, value-based understanding of consumer responses. Practically, the thesis offers guidance for brands considering CPA: Stakeholder alignment must be strategically assessed and managed. Brands should conduct issue-specific stakeholder analyses to ensure value congruence and minimize backlash. Ultimately, this thesis underlines that in CPA, aligning with stakeholder values is not just beneficial, but a strategic necessity for sustaining positive brand perceptions.