Abstract

The conventional view of the relationship between ratings of corporate social responsibility (CSR) and responses to activist shareholder resolutions is that firms with low CSR ratings are likely to resist activist’s pressures to change corporate policies and behavior. By contrast, firms with high CSR ratings are more likely to support such activist shareholder efforts. In the IABS discussionsession and this paper, we argue that the conventional view of corporate responses to shareholder resolutions is inadequate to explain the motivations, strategies, and tactics of firms when they respond to activist shareholders