For a number of years, directors and boards of public companies, particularly in the United States, have been placed under ever-increasing scrutiny. Although much of this attention stems from governments, the media and judiciary, one of the most influential sources has been investors: namely ‘activist investors.’
The increasing power of this ‘investment class’ is reportedly driving the shift away from the board-centric model of corporate governance towards a more skeptical, shareholder led model. This move has vested shareholders with greater power over corporate decision-making, pressuring companies to take account of wider social issues, including environment concerns.
This Lexicon article highlights the positive changes being driven by ‘shareholder activism’ and the ongoing effort to force companies to embrace a new era of environmental accountability.
This is related to the shifts discussed and analysed in this Lexicon article, which examines the broader implications of this push towards socially responsible companies.
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Editors: Abbey Seckerson and Katharine Haywood