Shareholder advocacy is a strategic tool used by investors to address corporate policy and to influence companies to improve or halt specific behaviors. Shareholders have substantial influence within these companies, and when they align with a particular cause, they can bring about changes that benefit the land, resources, culture, or community of Indigenous Peoples.
Shareholders collectively own publicly traded companies through shares, also called stocks, representing a percentage of the business. As owners, shareholders have certain rights to engage with corporate leadership on issues of concern. When a significant number of shareholders advocate for a particular issue or action, companies are compelled to address it.
Shareholder advocacy strategies include a number of different tactics and can be implemented in an adaptive continuum of engagement. Through letter writing, shareholder resolutions, investor and company meetings, and targeted media engagement, Indigenous Peoples can alert shareholders and investors of the potential risks of a particular project. Critical to this strategy is for allied investors to activate their portfolio to engage with companies they hold, and to forward dialogue that is made persuasive by their leverage as a shareholder.
Shareholder advocacy complements other avenues of change. Large-scale corporate campaigns, international policy engagements, and legal and legislative actions can share the common goal of amplifying Indigenous voices and resolving their issues.
As companies become more aware of the importance of scoping for Indigenous Rights Risk and the costs and reputational damage from lack of due diligence around the rights of Indigenous Peoples, shareholder advocacy is a critical strategy to change company behavior.