A Strategic Response to Investor Activism

Buy this article E-mail this page 

How can a corporate executive balance social and economic pressures when social activists and corporate investors are the same people? This is the quandary Amoco Corporation faced when investors repeatedly filed proxy resolutions requesting adoption of the Valdez Principles, ten environmental principles developed by the Coalition for Environmentally Responsible Economies (CERES). The author describes the evolution of the relationship between CERES and Amoco. He shows how Amoco responded strategically to investor activism with corporate activism. He also discusses the three factors determining a company's response to investor activism: the firm's culture, the power and influence of the group filing the resolution, and the political climate in which the resolution is filed. Ultimately, responding to investor activism becomes an important aspect of integrating political strategy into competitive strategy.

Andrew J. Hoffman is visiting assistant professor of organizational behavior and Environmental Council postdoctoral fellow at the J. L. Kellogg Graduate School of Management, Northwestern University.

$	6.50	Buy PDF
$	12.00	Buy PDF and permission to copy
$	5.50	Buy permission to copy from your own original
$	6.50	Buy paper reprint
$	12.00	Buy paper reprint and permission to copy

Academic pricing and volume discount information

[top] [back]