DOI: 10.5176/2010-4804_2.4.252
Authors: Mislav Ante Omazić and Alen Rubčić
Abstract:
In a business community shareholder activists are often perceived as a group with hidden agenda, whether it is social, economical, environmental, value based or any other, that could have impact on companies’ reputation. On the other hand this type of activism is becoming an increasingly sophisticated strategy of engagement, which exploits shareholders rights to engage companies on particular issues that are important to them. Although activism can take many forms, shareholders in transitional economies such as Croatia are still showing high level of passivity and inertia. On parallel basis corporate responsibility as an integrative model directly reflecting corporate reputation is gaining exponential attraction since it is more widely perceived as a new strategic source of competitive advantage. In that sense this paper explores reputational interaction between corporations and one of their most powerful stakeholders, its shareholders. The research within this paper is focused on Croatian companies and is covering several aspects of shareholder activism. In this paper authors are trying to describe reasons behind passive investors' community and why they should act as a more vibrant corrective factor for possibly poor corporate governance.
Keywords: corporate reputation, corporate social responsibility, shareholder activism, stakeholder management
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