Shareholder Advocacy With Chris Meyer

Show Notes

Chris Meyer is Manager of Stewardship Investing Advocacy and Research at Praxis Mutual Funds,  an underwriter of this program. 

• Many people begin by screening or avoiding certain industries or companies based on their values.
• Screening is a valid approach but has limited power to create real change.
• Praxis uses seven different impact strategies for investments.
• Shareholder advocacy is one of these strategies, leveraging ownership rights to drive change.
• Shareholder advocacy includes activities like writing letters, filing proposals, and engaging in dialogues with company management.
• The goal of shareholder advocacy is not to chastise or embarrass companies but to encourage profitability while also promoting positive impact.
• Praxis collaborates with other investors, primarily from the faith community, in their advocacy efforts.

• Collaboration with others significantly enhances the impact of their work.
• Coalition efforts with various faith-based institutional investors broaden and deepen their reach.
• Companies are more receptive when approached collectively by a coalition.
• Collaborations focus on common interests and shared capacities.
• Example: Praxis collaborates on human rights and child labor issues, while others may focus on pharmaceutical companies and medication affordability.
• Praxis takes leadership roles in some engagements and partners actively in others.
• Prioritization of issues and companies is essential due to limited resources.

• Engagement preparation involves issue prioritization and collaboration with investor partners.
• Teams are formed, leadership structures are established, and goals are set.
• Education and strategy sessions, both in-person and virtual, are organized to become well-informed about relevant topics.
• External expertise is often brought in to enhance understanding.
• Example: Engagement with Target and Walmart on human rights and child labor issues.
• Focus is on encouraging robust human rights policies and supply chain enforcement.
• Pre-engagement research includes reviewing company publications, reports, and industry news.
• Input from human rights experts and NGOs is sought to understand global supply chain issues.
• Thorough preparation is crucial for gaining understanding and credibility in engagement with companies.

• Meaningful dialogue with company management is the pinnacle of shareholder advocacy for impactful change.
• Engagement usually starts with an investor letter outlining concerns and requesting dialogue.
• Initial communication may be with investor relations and corporate counsel.
• The goal is to engage with decision-makers overseeing the relevant issue, often vice presidents.
• Dialogues are typically in-person or via video conference, lasting one to two hours or longer.
• Building strong, trusting relationships is crucial.
• Success comes when companies see a vested interest in their future success and the relevance of the concerns raised.

• Setting clear goals and ways to measure success is crucial in advocacy.
• Having a vision of the desired outcome of the dialogue is important.
• Long-lasting engagements can lose meaning without a clear endpoint.
• Avoid being seen as a nuisance by the company or becoming their free consultants.
• Common scenarios for ending dialogues include a company refusing to engage or dismissing concerns.
• In the best case, all goals are met or exceeded, and the engagement transitions to a monitoring phase to ensure commitment follow-through.

• Is there a more affordable way to handle the Medicaid paperwork and power of attorney, given limited financial resources?
• What’s the best way to invest for a child’s future?