Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

A primary goal of shareholder activism is to enhance transparency and accountability in company governance. This type of activism involves shareholders using their rights and influence to demand changes in the company’s policies or practices. By advocating for better governance practices, such as clearer reporting and more inclusive decision-making processes, shareholders aim to ensure that the interests of all stakeholders are considered and that the company operates in a sustainable and ethical manner.

This focus on transparency and accountability is crucial because it helps build trust with investors, customers, and the broader community. Improved governance can lead to better decisions at the board level, ultimately enhancing company performance and risk management. Thus, shareholders who engage in activism often seek to push for reforms that benefit both the company and its stakeholders in the long run.