BSR Insight | Shareholder Activism, SRI Identified as Useful Tools for Change
About the Author(s)
Laura Gitman, Managing Director, Advisory Services
Publication Date
March 13, 2012
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Shareholder activism and socially responsible investing (SRI) are viewed as important tools of social and corporate change, according to a recent SustainAbility and GlobeScan study (available with free registration).The study, which surveyed more than 640 sustainability experts from 77 countries, revealed that shareholder activism is more effective at driving changes in corporate strategy and behavior than other tactics, including public criticism through social and traditional media, dialogue with companies, and civil disobedience. Findings suggested that only product boycotts and preferential purchasing are more effective than shareholder activism. At BSR, we have found that shareholder activism has been most powerful in driving governance changes, increasing corporate reporting and transparency on sustainability issues, and raising attention to critical issues such as conflict minerals. Companies should look to engage their investors proactively and communicate about their material environmental, social, and governance issues, which can help them avoid shareholder resolutions and ensure their progress aligns with investor expectations.
About the Author(s)
Laura Gitman, Managing Director, Advisory Services
Laura spearheads BSR’s New York office, working with multinational companies across a range of industry sectors and sustainability issues... Read more →
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