Rebellion extinction: Does Exxon mark the end of shareholder engagement?
In an era where the corporate world is increasingly held accountable for its social and environmental footprint, a striking confrontation is unfolding, one that could redefine the very nature of stewardship. This conflict, epitomised by the recent legal battle between Exxon Mobil and its shareholders, is an acute example of the evolving complexities for corporate-governance professionals. […]
Georgia Stewart is CEO of Tumelo. This post was prepared for the Forum by Ms. Stewart. Related research from the Program on Corporate Governance includes Social Responsibility Resolutions (discussed on the Forum here) by Scott Hirst and Stockholder Politics by Roberto Tallarita.
In an era where the corporate world is increasingly held accountable for its social and environmental footprint, a striking confrontation is unfolding, one that could redefine the very nature of stewardship.
This conflict, epitomised by the recent legal battle between Exxon Mobil and its shareholders, is an acute example of the evolving complexities for corporate-governance professionals.
Gone are the days when the Friedman doctrine reigned supreme, where the sole responsibility of a business was to increase its profits; when alignment among company directors, asset managers and asset owners was straightforward and clear. When there was a singular focus throughout the whole investment chain on share price. As the corporate landscape has grown and globalised, this once-clear path is now fraught with the thorny issues that arise when any stakeholder considers performance across a diversified portfolio, and over the longer-term. (more…)
