Private Law Theory

ABSTRACT
One of the more visible market shifts over the past decade is the rise of what might be called ‘enlightened shareholder activism’ – the use of shareholder power to encourage corporate environmental, social, and governance (‘ESG’) practices. This essay argues that these important changes do not signal a fundamental shift away from the core economic interests of mainstream institutional investors, but they do highlight how corporate and securities law matter to questions of corporate and investor accountability, as well as the need for more robust ESG corporate reporting regimes. This essay also argues that the call to reexamine the values and interests that motivate shareholder activism is critically important in the ongoing debate about shareholder influence and what it might achieve.

Harper Ho, Virginia E, The Limits of Enlightened Shareholder Activism (December 1, 2021). International Journal for Financial Services / Revue Internationale des Services Financiers (2022).

First posted 2022-02-09 13:00:45