Frustrated institutional investors and shareholder advocacy groups say all they can do is keep trying to push companies in as many ways as possible — and that it will take both internal and external pressure to push for changes.
“There’s an arrogance about it that just cries out for some sort of justice,” said Michael Connor, executive director of Open MIC (Media and Information Companies Initiative), a nonprofit that works on socially responsible investing. Socially responsible investing — also known as environmental, social and governance (ESG) — has grown more popular in recent years, and is especially so among younger investors. Surveys show they care more about investing in companies whose values align with theirs than their older counterparts.
Connor added: “Once you’ve sold the company to the public, it’s the public’s company.”