What is 'shareholder activism'?

Shareholder activism refers to the efforts by shareholders to influence a corporation's practices and policies by exercising their rights as owners. This can involve a range of actions, such as engaging in dialogue with management, voting on shareholder proposals, or even organizing to support or oppose specific management decisions. Activist shareholders may focus on various issues, including corporate governance, environmental practices, or social responsibility, seeking to drive change that aligns with their interests or values. This involvement exemplifies the power of shareholders to impact the direction and management of a company, emphasizing their role not just as passive investors but as active participants in influencing corporate behavior.

The other choices do not accurately capture the essence of shareholder activism. Charitable investments, stock selling, and dividend campaigns are not inherently aimed at influencing corporate behavior or governance in the same proactive manner that defines activism.