The social structure of local communities has a powerful influence on whether businesses take a stand on controversial and societal issues, finds a new award-winning study, now published in Administrative Science Quarterly (ASQ).

Authored by School of Management Lecturer and Honorary Research Associate Enrico Forti and Associate Professor Joost Rietveld, and in collaboration with Associate Professor Alessandro Piazza of Rice University, the paper examines how organisations’ responses to contentious social issues – particularly those of small and medium-sized businesses – are pivotal for their survival as they often rely on local communities for legitimacy and support. 

Awarded for Best Paper on Environmental and Social Practices by the Academy of Management Organisation & Management Theory Division, the research focusses on the impact of comments made by the now-former CrossFit CEO about the killing of George Floyd and its effect on hundreds of affiliated gyms across the USA.

In the wake of the CrossFit CEO’s multiple controversial statements surrounding the killing of George Floyd, including a claim that he had been killed as part of an elaborate cover-up that was unrelated to racism, many gyms worldwide stated their intention to disaffiliate from the company entirely. 

Discussing the study, Joost Rietveld commented:

“As someone who studies businesses and practices CrossFit, I was intrigued by the mixed responses coming from affiliated gyms in response to the organisation’s now-former CEO’s remarks. Gyms and other small businesses rely on their local communities for all kinds of inputs and support. 

“Our study shows that when social issues are particularly salient in a local community, then businesses operating within those communities are more likely to act in response. This is true even for highly comparable businesses offering similar services carrying the same brand.”

The research analyses the full population of U.S. CrossFit-affiliated gyms, including both those that did declare their intention to disaffiliate and those that did not. It finds that gyms in communities with strong internal ties and limited external connections were less likely to respond to the controversy triggered by the CEO’s comments, while those in more open, diverse, and externally connected communities were significantly more likely to respond by severing ties with CrossFit.

Community structure matters

The researchers identified three key features of community that influenced responsiveness:

• Network closure: Communities with tightly knit and closed-off internal ties were less permeable to external issues, making them less likely to react.
• Segregation: Segregated communities showed lower levels of shared understanding, reducing the likelihood of collective action.
• Issue connectedness: Communities with stronger social ties to those directly affected by the issue—such as Minneapolis, where George Floyd was killed—were more likely to see the issue as locally relevant and act accordingly.

The study also found that gyms that were more dependent on their local communities, particularly those hit hardest by COVID-19 restrictions, were more likely to respond, indicating a greater need to reflect local thought and values.

Implications for business and society

The findings offer practical insights for organisations navigating political and social issues. Rather than viewing responsiveness as a purely internal decision, the paper highlights the importance of understanding community context.

After receiving the Best Paper award, Enrico Forti said:

“Studying business strategy is notoriously difficult. Researchers like me rarely encounter conditions for a clean test in the wild. In 2020, the pandemic’s collapse in gym attendance collided with two further shocks, creating a ‘natural laboratory’ for examining strategy formulation. 

“Every CrossFit affiliate in the U.S. was suddenly prompted to make a strategic choice in response to the same social issue, while simultaneously grappling with varying degrees of dependence on the local community. Our research shows how community social structure shapes the strategy of firms that are deeply embedded in their local communities. Receiving a Best Paper Award at the 2025 AOM meeting was both an honour and a fitting way to celebrate a fruitful collaboration with exceptional co-authors”.

• Read the full paper here
• Find out more about Enrico Forti’s research
• Find out more about Joost Rietveld’s research