Otherwise, money goes from one speculator to another, not to the company. But some stockholders, exercising what democracy is available to them, have taken matters into their own hands. All publicly-traded companies are required to allow stockholders to make proposals at some level. Shareholder activism, as this activity is called, has been brought to bear because of religious conviction, environmental beliefs, social justice concerns or simply a disagreement with how the company is managed. Even if these proposals do not pass, they can attract media attention, and embarrass companies into taking action.
Shareholder activism is one facet of what proponents call socially responsible investing.
In addition to trying to influence companies from the inside, groups like the Social Investment Forum recommend mutual funds that choose stocks based on political goals, from environmental to religious criteria. Corporate responsibility is not a single phenomenon. But as stockholders, employees and customers demand more than a robust bottom line, they add more variables to every ledger sheet. All Rights Reserved. Terms under which this service is provided to you.