Stewardship

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Stewardship, also referred to as Active Ownership, is defined as taking an active role as a shareowner to promote the long-term success of companies in such a way that society and the ultimate providers of capital also prosper. This can be done through engagement and proxy voting.

Stewardship therefore benefits companies, investors and the economy as a whole. It typically involves purposeful dialogue between shareholders and boards with the aim of ensuring a company’s long-term strategy and day-to-day management is effective and aligned with shareholders’ interest.

Good stewardship should help protect and increase the value of investments. The act of supervising, or the responsible management of something (e.g. one generation’s Stewardship of Natural Resources for future generations).

Links

Active Ownership 2.0: The Evolution Stewardship Urgently Needs PDF