The Corporate Library: Servant of Special Interests

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Labor unions, left-leaning foundations and activists declare their support for “shareholder democracy” in calling for the adoption of shareholder resolutions at corporate annual meetings. But their efforts to gain shareholder proxies to endorse policy positions, restrict CEO pay, and replace company  directors is really about shifting power from management to special interest groups. It’s also about changing the mission of the corporation from maximizing profits for shareholders to serving their own social and political goals.