Csr Assignment

Preface assignment 2

This assignment is a natural extension of assignment 1, and part of the case on corporate responsibility and capital markets. We will focus on the discussion of shareholder activism for corporate responsibility. We have to explore shareholder activism as a means of fulfilling the goal of responsible investing. The first impression about shareholder activism that the working group wishes to obtain is about the set of social policy issues that shareholders raise at companies. The working group is concerned that the effectiveness of their own shareholder activism practices depends on the social policy issues that are raised by shareholders, apart from the issue of how effectiveness is measured to begin with. The second issue that the working group is interested in concerns voting behaviour. Below we will describe the relevant answer for assignment 2.

Chapter 2: Capital markets and Corporate Responsibility? Shareholder Activism

Chapter 2.1: Active Shareholder

2.1.1 Active shareholder versus SRI screening approach

As we referred in the introduction, shareholder activism can be viewed as representing a range of responses to corporate performance. On the other hand, individuals can simply buy and sell shares that could be considered ‘active’ shareholders (Gillan, S. and L. Starks, 1998). Inversely SRI is also known as socially conscious, "green", sustainable, or ethical investing which refers to any investment strategy which search for to consider both financial return and social good. Overall, socially responsible investors (SRI) strengthen corporate practices that support environmental stewardship, customer safety, diversification and human rights. Reference? See footnote

The definition of an activist investor is when a shareholder uses ownership position in order to achieve governance changes. See footnote An important role of the activist shareholder is in the process of governance; sometimes it works for the better and sometimes...