CHAPTER 11

Stewardship, Engagement and Voting

Owners who change companies

Opening question

“Should I sell the polluter or stay and push it to change?”

In this chapter

Shareholders' rights and responsibilities, and the stewardship codes that describe them
How an engagement is run: objectives, dialogue, escalation and collaboration
The economics of engagement and the free-rider problem, with a worked example
How proxy voting works and what investors vote on
Shareholder resolutions and how support is counted, with a worked example
Divest or engage: what theory and evidence suggest
The special role of index funds
Governance in Vietnam: concentrated, state and family ownership

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This chapter is in the full book

Chapter 1 is free to read online. The full text of chapter 11 — with its tables, figures, worked examples and practice lab — is available in the complete edition of ESG and Sustainable Investing: From Theory to Practice — Vietnam Readiness (Volume 4, NXW Investment Library).

Read Chapter 1 free Get the full book — [email protected]

Sections of this chapter

11.1 Sell or stay?

11.2 Rights, responsibilities and stewardship codes

11.3 Engagement: objectives and dialogue

11.4 Escalation

11.5 Collaboration and the economics of engagement

11.6 Proxy voting: how it works

11.7 Shareholder resolutions

11.8 Divest or engage? The evidence

11.9 Governance in Vietnam and Asia

11.10 Making stewardship accountable

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