Click link for download: https://99papers.com/?rid=2511
please post the number and name next to each response
Week 4 - Discussion 2
5252 unread replies.6060 replies.
Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.
In your own words, yet citing the text, define shareholder activism and stock screening. Defend your position using at least one example. Respond to at least two of your classmates’ postings.
#3 Hayden Green
Jul 30, 2017Jul 30 at 11:44am
In my own words I would define shareholder activism as, “Shareholders taking deliberate and intentional steps to bring ethical and moral balance to what appears to be unethical or immoral situation.” Are shareholders always correct? I would say no. But at times corporations do break the law, commit unethical behavior, treat employees or customers unfairly, etc.
Salary and pay is a sensitive topic. I personally love the free market. If a corporation can make large sums of money and wants to pay their leaders well, then that is their right, and I encourage it. I think the issue is when you have employees making so little for so hard of work. Then on the flip side board directors, CEO’s, and management making huge sums compared to their work load. However CEO’s and management boards work very hard. They have a lot of responsibility; people with those burdens should be paid well. Quite frankly, corporations are free to do that. The idea and hope of the free market is that the people will realize if it is unfair or unethical and seek work elsewhere or seek to influence the corporations to do what is right. As our text states, “Shareholder actions may include lawsuits or negative media campaigns that are intended to influence corporate leaders.” (Hammond, S.C., & Christensen, L.J. 2016 p. 3.5) Shareholders have power to influence changes.
We are always competing. Where one corporation fails to take care of its shareholders, another corporation will step in and compete against them. Corporations should be motivated to follow good ethics and morals because it is the right thing to do. I would love to see more CEO’s leading by example and voluntarily taking pay cuts to help their employees out in times of companywide or economic financial hard ships. But if they choose to lead unethically and live greedily, then the hope is that their competitors in the free market will compete with them and in a very real way take their shareholders from them by offering better paying jobs, and investment returns. However I understand this does not always happen and at times government regulations are needed, as well as legal accountability.
In my own words I would define Stock Screening as, “Stock holders attempting to influence corporations through social responsibility.” This can be both good and bad. Just because a large portion of society believes a certain product or way of producing a product is best, does not mean that it actually is. However the people want to know that the corporations they are investing in are making good ethical decisions. Our text stated that “…1 of every 9 dollarsunder investment is invested in an SRI fund; the total size of the SRI market is in excess of $4trillion.” (Forum for Sustainable and Responsible Investment, 2016) This is a lot of money and this idea of Social Responsible Investing is gaining traction. If corporations want to stay relevant in the market they must take careful consideration on how and why they invest in certain products. On a small level I see this happen a lot at farmers markets. People in my town flock to the “natural” and “organic” food stands. The people want whole and healthy foods. On a small scale they are driving local farmers to produce foods with no chemicals and preservatives. This trend is catching on in all the groceries stores now to. Larger and larger sections are being dedicated to “organic” foods.