Issues Of Concern for Shareholder Activists and Ethical Investors
Shareholder activists and ethical investors will all have their pet issues or political issues that they tend to focus on one way or another. However, these issues are far from random. There are certain issues that shareholder activists in general tend to focus on more often than others. Ethical investors will usually pay attention to certain business practices when they are trying to decide where to make their investments.
Many of these individuals have had liberal arts educations in addition to all of their business training. They will have heard about a lot of the environmental and social issues that are influencing the increasingly global society in the modern world. They will also probably know about ethical business management, thanks to courses that they have received in that category. Ethical business management is an increasingly important and widely recognized topic. Business-people who have had courses in ethical business management will be equipped to recognize ethical businesses when they see them, and they will be just as equipped to recognize unethical business practices.
Many corporations are infamous for being the cause of pollution. Pollution and toxic waste is still an important environmental issue today, although it tends to get significantly less attention than global climate change and greenhouse gases. Many ethical investors are more likely to choose companies that emphasize low greenhouse gas emissions and maintaining high environmental standards. Environmental managers now make their living making sure companies uphold certain environmental standards, and they can just as easily make sure that new and rising companies do the same thing. They can provide all of the information that ethical investors could possibly need when they are trying to decide where to put their money.
Ethical investors may have had to do their own investigative work at one point, but today, there are plenty of non-profit organizations and for-profit organizations who are interested in monitoring the business practices of various organizations. Ethical investors and shareholder activists can use that information to their advantage.
While there’s a great deal of overlap between environmentalism and other types of social activism, ethical investors and shareholder activists are also interested in labor standards. They will look at how different companies are treating their employees. The aim is to reward companies that offer their employees fair salaries and benefits, while forcing other companies with inferior standards to compete with them. The shareholders and investors that are able to accomplish that can help set new labor standards for a given industry.
However, in many cases, investors and shareholders are going to be more interested in whether or not a company benefits from sweatshop labor, or whether a company is taking advantage of individuals who come from countries with lax labor laws. Ethical investors will usually try to make sure that they support companies that don’t support sweatshops or benefit from sweatshop labor. They will also look at where given companies conduct their business, making sure that they’re not doing business with exploitative parties.
The global nature of modern business has created some truly fascinating legal loopholes. Shareholder activists and ethical investors will try to look into those loopholes, ascertain what this says about the companies they’re supporting or the companies they’re thinking about supporting, and they will make their decisions accordingly.
Some shareholder activists and ethical investors will also look at other factors. Some of them will pay attention to a company’s hiring practices. For instance, some investors will avoid supporting a company that does not seem to hire women, people of color, or LGBT people. Investors may also look for other signs that a company is discriminatory in any way, including indications that they have had a lot of problems with sexual harassment cases. Companies must treat all individuals who are involved in the supply chain well, or they are not going to get the support of shareholder activists or ethical investors.
There are many different ways that companies can be unethical. The shareholder activist and the ethical investor must be skilled at recognizing all of them, and making the right decisions based on that information. Shareholder activists and ethical investors should avoid having pet issues that they focus on at the exclusion of all of the other issues. They should try to make sure that they are taking all ethical issues into account, or they are going to risk becoming single-issue voters, with all that that implies.