The Conscious Company Glossary

Shareholder Advocacy

According to US law, anyone who owns shares of a company has the right to influence its policies. At the annual general meeting of a company, every shareholder is asked to vote on a range of issues including electing the board, approving CEO pay, governance and policy questions, and an array of environmental and social issues that shareholders have raised. Shareholder advocacy is the practice of using that right to influence a corporation’s behavior by ling resolutions or otherwise requesting dialogue. In recent years, shareholder advocacy has proved to be an effective technique for improving the environmental, social, and governance policies of major corporations.