How Investor Activism Affects Corporate Social Responsibility

Prominent activist investors such as hedge funds, pension funds, and influential individual shareholders and families increasingly aim to reshape corporate policies and strategy. In our paper “Shareholder Engagement on Environmental, Social, and Governance Performance”, we use a proprietary dataset covering 660 companies globally over 2005-2014 to study investor activism promoting environmental, social, and governance (ESG).

In the past two decades, socially responsible investing (SRI) has grown from niche to mainstream. The 2015 report of the UN Principles for Responsible Investing indicates that a large number of institutions (managing about $59 trillion) have endorsed these investing principles, thereby declaring … Read more