Shareholder Activism

Shareholder activism refers to the efforts of investors to influence a company's decisions and policies by leveraging their ownership stakes. Activist shareholders, which can include individuals or institutional investors, may push for changes such as improved management practices, social responsibility, or financial strategies to enhance shareholder value. They often use tools like proxy voting, public campaigns, or direct communication with management to advocate for their goals. This activism aims to ensure that the company operates in a way that aligns with shareholders' interests, potentially leading to better performance and accountability.