ABSTRACT
This chapter deals with the role of shareholders in influencing company performance, encompassing all aspects of company’s social, environmental and economic performance including its performance on human rights. It deals with the following issues: the context of investment, the legitimate role of investors and the issue of ‘fiduciary duty’, the scope of responsibility and the manner in which pension funds are fulfilling their duty in practice. The chapter also deals with the issues of future directions, including some practical suggestions on how to make the shareholder dimension effective in improving company performance. In addition to the initiatives on corporate governance, there have also been some moves on social, environmental and ethical issues. The business case for investors taking proper account of social, environmental and ethical issues in investment decisions is not opposed to the moral case. Buying some of the requirement of cocoa on the general commodity markets still leaves chocolate companies exposed to a risk of brand damage.
