Email   Print

Share

One last thing...

'there should be more SSR'

You must mean CSR, Corporate Social Responsibility.
“No, Shareholder Social Responsibility or SSR. More and more, we’re holding citizens and corporations accountable for their societal responsibilities. Why shouldn’t the same apply to shareholders?”

Because shareholders ensure optimal economic growth?
“You have a moral obligation to examine the effects of everything you do on other people and on the environment, and that includes your role as a shareholder.”

Do you think shareholders are too short-sighted?
“There are still a lot of shareholders who see their short-term financial performance as their main priority, although some applaud companies that pay more attention to all stakeholders and take the longer term into account. Without SSR, the increasing demand for more power for shareholders would mean a step backwards.”

But how can you enforce this notion of shareholder social responsibility?
“Shareholders should recognize that their role carries an obligation to take more public responsibility, just as companies are doing. Individuals should be able to explain why they are buying or selling shares in a particular company.”

Essentially, you’re talking about a sustainable relationship.
“Yes, there should be a kind of marriage between shareholder and company. And in that marriage, love should come from both sides.”

How can you stimulate that love?
“You can become closer if companies are honest about business dealings even where the results may not be readily apparent. In exchange for this openness and transparency, companies should be able to expect shareholders to stick by them through thick and thin. It’s quite conceivable that companies with a strong CSR policy will look for shareholders willing to invest for reasons that are not strictly financial.”

So you’d have to apply first before becoming a shareholder?
“It’s an interesting notion that you couldn’t become a shareholder just like that. For a company, not all share holders are equally good.”

Peter Blom is the managing director of the Triodos Bank.