Changing the world through shareholder activism?

Abstract

As one of the more progressive facets of the socially responsibleinvestment (SRI) movement, shareholder activism isgenerally recommended or justified on the grounds that itcan create social change. But how effective are differentkinds of activist campaigns likely to be in this regard? Thisarticle outlines the full range of different ways in whichshareholder activism could make a difference by carefullygoing through, first, all the more specific lines of actiontypically included under the shareholder activismumbrella and, second, all of the different ways in which ithas been suggested that these could influence the activitiesof commercial companies. It is argued that – althoughmuch more empirical research is needed in the area – thereare at least theoretical reasons for thinking that it will bedifficult to influence companies through the standardactions of filing or voting on shareholder resolutions.However, some alternative strategies open to activists mayallow them to increase their efficacy. It is specificallyargued that even individual investors could be able to pushfor corporate change through devising a radically selfsacrificialcampaign that manages to get the attention ofpowerful forces outside the corporate sphere.

Managing pollution from antibiotics manufacturing: charting actors, incentives and disincentives

“…Reputation may also indirectly concern many large investors in pharmaceutical companies (#5), regardless of whether the companies are research-based or generic producers. Financial institutions, such as banks, insurance companies and pension funds, have been shown to be sensitive to pressure from consumers and advocacy groups (albeit slowly and not always effectively, see [32, 33]). However, since protecting the reputation of a market brand is connected to whether a company seems to act in a responsible and sustainable manner, not just whether they actually are, there is a lack of incentive to push for a more transparent system.…”

Investing and Intentions in Financial Markets

“…But without the intended financial return for oneself, venture philanthropy is much closer to donating than to investing money. On the other hand, ethical investment as understood here is unlike shareholder activism (Sparkes 2001;Sandberg 2011). Like ethical investors, shareholder activists want to promote a certain cause.…”

Shareholder Activism and Corporate Social Responsibility in Malaysia - Hi̇ssedar Akti̇vi̇zmasi Ve Malezya'da Kurumsal Sosyal Sorumluluk

“…The area on CSR and sustainability are now should be one of the main concerns among shareholders in Malaysia. According to Sandberg (2011) shareholders demanding on full disclosure of CSR report, sustainability report, and Global…”

“…Another unfortunate fact is that, resolutions can be time consuming, involves money and demands complicated procedures. In addition, shareholders resolutions are non-binding, management are not obliged to implement them (Sandberg, 2011). However, some great difficulties and risk could give high returns.…”

“…However, some great difficulties and risk could give high returns. Powerful resolutions are so much impactful, and many socially minded investors try to change the behaviour of the corporation through an introduction of social resolutions (Sandberg, 2011). In order to successfully influence the company through resolutions, the resolutions need to get enough votes at the AGM (at least for the proposal to pass formally).…”