Effective Shareholder Engagement: The Factors that Contribute to Shareholder Salience
Institutional investors are increasingly becoming active owners through voting their shares and engaging in dialogue with investee companies to improve corporate environmental, social and corporate governance (ESG) performance. This article applies a model of stakeholder salience to the shareholder context, analysing the attributes of power, legitimacy and urgency, to determine the factors that are likely to enhance shareholder salience. It is found that a strong business case and the values of the managers of investee companies are likely to be the most important contributors to shareholder salience.
Keywordsshareholder engagement stakeholder salience shareholder activism
Annual general meeting
Chief executive officer
Environmental, social and corporate governance
Organisation for Economic Cooperation and Development
Principles for Responsible Investment
Socially responsible investment
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