As the concept of stakeholder capitalism has gained endorsements, the call for a redefined economic system that delivers shareholder returns while focusing on sustainable long-term value creation has grown in importance.
Developed in collaboration with The World Economic Forum, this paper focuses on identifying new insights on stewardship in public equity markets by addressing the following questions:
- What is the investor-corporate relationship, who are the stakeholders, and what are the current issues?
- What is investor stewardship and why do global public markets benefit from investor stewardship?
- Why should investors enable good stewardship?
- Where and how can investors enable good stewardship?
This paper also provides a framework to help investors prioritize their stewardship activities based on insights from index managers, active managers, asset owners and activist hedge funds. As investors increasingly view stewardship as an important lever for generating sustainable financial return, it will also help public corporations map the stewardship activities of their investor base to achieve their business objectives.
This report was prepared by The World Economic Forum in collaboration with Oliver Wyman. Oliver Wyman Partner, Samir Misra, Engagement Manager, Wenhan (John) Lin and Associate, Justin Jenssen, contributed to this report.