shareholder activism

Shareholder Activism is the process of dialogue with company executives and filing shareholder resolutions generates investor pressure on corporate executives, garners media attention (which adds even more pressure on corporations to improve their behavior), and educates the public on often-ignored social, environmental, and labor issues. The process has served as a powerful tool to encourage corporate turnaround in social and environmental policies. Ultimately, this can lead to a more sustainable company.

Shareholder activism, also known as shareholder advocacy, first gained momentum during the 1970s when religious investors formed a coalition (the Interfaith Center on Corporate Responsibility) to advocate for socially responsible changes in corporate policies.

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