Recent years have witnessed a growing trend of stakeholder issues becoming prominent in discussions of corporate governance. One source of this pressure comes from an unexpected constituent: the company’s own employee base. In this Closer Look, we examine the rise of employee activism and its implications on corporate mission, the board, and management.
We ask:
- How well does management and the board understand the impact of employee activism on its business?
- Does activism lead to lost productivity, or does supporting activist initiatives improve the company’s reputation in the labor market?
- How well has the board set the boundaries on ESG-related activities the company will engage in?
- How should companies engage in relevant issues without losing sight of the company’s core mission?