Engaged shareholders are seen as key to better corporate governance but are they the best people to ensure companies’ long-term interests?
For the past two decades, at least since the 1992 Cadbury report, the corporate governance agenda has been dominated by shareholder responsibility. The current corporate governance code, though administered by the Financial Reporting Council, relies on shareholder activism to pursue its ambitions. A continuing chorus exhorts shareholders to do more, and the mission has expanded from corporate governance to environmental and social concerns.
