About the Shareholders' Project
- Have you ever bought or been given shares?
- Do you have superannuation?
If you answer 'yes' to either of these questions then the Shareholders' Project concerns you!
Background
Australia has the highest share owning population in the world: 53.7% of Australians hold shares either directly or indirectly through superannuation or managed funds. The education of shareholders and the role of corporations in Australia is a key issue facing the community.
Shareholders are becoming increasingly active in respect of their shares and the activities of the companies in which they invest. Corporations are managing the sometimes conflicting pressures of providing a maximum return on shareholder investment with emerging expectations about social and environmental investment screening, and the corporation's reputation as a good employer and community citizen.
There is talk of a 'new settlement' between government, business and the community. Government is expecting more social responsibility from the corporate sector; corporations are being encouraged by government to become more interested in social and environmental projects, ethical investment and engaging with their neighbouring communities and employees in mutually respectful ways.
What does the shareholding public want? It is timely to look closely at these competing pressures and analyse the real preferences of shareholders and the different ways in which corporations could respond, or even take the initiative.
The project
The Shareholders' Project comprises a group of people with expertise and an interested shareholder- corporate relations and have come together to think through what this rise in share ownership in Australia might mean for individual and institutional investors, as well as for society overall.
The Project has an Advisory Group and Project Steering Committee. The Project sponsors include The Myer Foundation, the CEPA Trust, Perpetual Trustees, the Lance Reichstein Foundation, BP Australia and the Victorian Government (Department of State and Regional Development).
View a full list of the Project Advisors, Consultants and Steering Committee can be found here.
St James Ethics Centre is pleased to be a partner in the Shareholders' Project. Learn more about our involvement.
The surveys and papers
The Project began with a review of the issues surrounding shareholder-corporation relationships. These are set out in the Background Briefing paper, prepared by Catherine Brown & Associates (September 2001) (PDF).
Two surveys were commissioned from Irving Saulwick & Associates which investigate quantitatively and qualitatively the views of individual and institutional shareholders about topics ranging from corporate governance and ethical investment, to shareholder participation and action. These two surveys can be found below:
Quantitative study of shareholder attitudes to investment-related issues (PDF)
Qualitative study of superannuation trustees and general financial investment managers' attitudes to investment-related issues (PDF)
There are several areas highlighted by the surveys which indicate that more initiatives and public education with regard to these issues would be of great benefit. These include:
- use of the web for increased shareholder participation in listed companies
- combined action amongst smaller institutional investors to increase their impact
- improved understanding of ethical investment concepts and some analysis of the reasons for the difference between knowledge and actual investment decisions
- increased education of women and young people about corporate governance and shareholder participation
The survey results were to have been released at a Forum to be held at Victoria's Parliament House on 15 September 2001, however, the Forum was cancelled at the request of the CEPA Trust out of respect for those suffering as a result of the enormous tragedy of 11 September in New York.
Professor David Birch of the Deakin University's Corporate Citizenship Unit has reviewed the survey results in the paper below, which adds the survey findings to the current body of knowledge. Downloads the Shareholder-Corporate Relations in Australia: Some New Economics, Corporate Citizenship and Sustainable Capitalism Perspectives (October 2001) (PDF).
The Ethics Centre's involvement
Please note that the surveys, papers and other materials available from this site regarding the Shareholders' Project were not produced by St James Ethics Centre.
The Centre was pleased to be a partner in the Shareholders' Project. Learn more about our involvement.