Workers' Compensation and Correct Answer

Question 1 (Worth 10 points)
Describe the “proxy system” and how is it used to as activism to encourage companies to “go green.”
|ESSAY SUBMISSION |
|The proxy system allows share holders to vote on proposals and to also make proposals to the company in which they own stock. Each share |
|owned normally count for one vote. If share holders band together that chances of a proposal they agree with passing a the vote is much |
|greater. There are several examples of share holders using their power to influence large corporations. For example in 2003 as part of |
|Carbon Disclosure Project investors that represented over 9 trillion dollars in assets wrote 500 of the largest companies demanding |
|relevant information concerning greenhouse gas emissions. They believed that the implications of climate change partial caused by the |
|company could effect the share holders capital. This proposal was sent to AIG but never made the ballot and was never voted upon. Similar |
|proposals have been made to Ford and they have disclosed what they are doing to try and reduce greenhouse gas emission. Proposals from |
|share holders are nonbinding and companies do not have to follow the outcome but understand the importance of their company's share |
|holders. |

Question Information: In advance of each annual meeting, shareholders are sent form ballots listing the items that are up for vote, including membership on the board of directors, choice of an outside auditor, and resolutions brought by the board or shareholders. Each share of stock generally counts as one vote. Shareholders have the right to come to the annual meetings in person to cast their ballots, but few do. If they prefer,