Stewardship Codes
Stewardship codes are guidelines that encourage institutional investors, like pension funds and asset managers, to act responsibly in how they manage investments, particularly in relation to corporate governance. These codes promote active engagement with the companies they invest in, ensuring that they consider long-term sustainability and ethical practices. By adhering to stewardship codes, investors are expected to vote on key issues, communicate their strategies, and monitor company performance. This approach aims to align the interests of investors with those of the companies and their stakeholders, ultimately fostering better business practices and improving overall market integrity.
Additional Insights
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Stewardship Codes are guidelines designed to encourage responsible investment practices among institutional investors, such as pension funds and asset managers. They promote active engagement between investors and the companies they invest in, emphasizing the importance of protecting shareholders' interests and sustainability. By adhering to these codes, investors commit to monitoring company performance, engaging in dialogue with management, and voting on significant issues. This approach aims to create long-term value for investors and enhance corporate governance, ultimately benefiting the broader economy and society.