What is Shareholder Advocacy?

Shareholder advocacy or activism is the process by which individual shareholders, or groups of shareholders, attempt to influence the decisions made by a company’s management. It encompasses various strategies to engage in companies’ investment portfolios on corporate, social and environmental governance issues.

There are various forms of shareholder advocacy, including resolutions at shareholder meetings, proxy fights, publicity campaigns, negotiations with management and litigation. Shareholder activists may use any or all of these tools to achieve their goals.

While there are no definitive statistics on the effectiveness of shareholder advocacy, there are several high-profile examples of successes achieved by activist shareholders.