Abstract
As one of the more progressive facets of the socially responsible
investment (SRI) movement, shareholder activism is
generally recommended or justified on the grounds that it
can create social change. But how effective are different
kinds of activist campaigns likely to be in this regard? This
article outlines the full range of different ways in which
shareholder activism could make a difference by carefully
going through, first, all the more specific lines of action
typically included under the shareholder activism
umbrella and, second, all of the different ways in which it
has been suggested that these could influence the activities
of commercial companies. It is argued that – although
much more empirical research is needed in the area – there
are at least theoretical reasons for thinking that it will be
difficult to influence companies through the standard
actions of filing or voting on shareholder resolutions.
However, some alternative strategies open to activists may
allow them to increase their efficacy. It is specifically
argued that even individual investors could be able to push
for corporate change through devising a radically selfsacrificial
campaign that manages to get the attention of
powerful forces outside the corporate sphere.