OWNERSHIP IMPLIES RESPONSIBILITY

What about your investments? Perhaps, like 91 million Americans, you own stocks directly in companies or funds that are composed of dozens, hundreds, or even thousands of stocks. Are you responsible for the behavior of these companies?

Figure 2: Are you responsible for your dog’s actions? Photo used with permission of the author.

If a company that you own causes an oil spill that does damage (like your dog did in the neighborhood), would you feel that this is your responsibility? Or would you think, “That’s for management and the board to deal with.” Do you give it a second thought? Do you even track the activities of the companies that you own?

Although the corporation shields investors from direct legal liability, moral responsibility is another story: Do you want a company that you’ve invested in—and that is benefitting you financially—to act in ways that are contrary to your values? In addition, can you use your influence as a shareowner to help your company become more profitable and have a positive impact on society by adopting policies that enhance its image, increase employee retention, and reduce risk from liability?