The Fastest-Growing Cause for Shareholders Is Sustainability

While activism takes many different forms, it usually begins with investors holding private conversations with company management on the need to change a process, business model, or management practice. When management fails to adequately respond to investor queries or concerns, investors typically file shareholder resolutions that ask all of the company’s shareholders to vote on a specific topic. If, before the resolution is subject to a vote at the annual general meeting, the company agrees to comply with the request or to take alternative measures that address the investors’ concerns, the investors withdraw the resolution. Otherwise, shareholders vote on the resolution.