Issues with financing nursing education while paying vehement attention to Nursing Workforce Reauthorization Act of 2017 and its revision. Nowadays, being a nurse implies not only providing high-quality care but also being a social example, role model, and political leader (Salmond & Echevarria, 2017; Sun et al., 2015). Thus, education in this sphere continues changing its focus and pays more attention to the social side of the profession, but, clearly, the government does not devote enough financial resources to resolve this problem, and I would like to address this problem from a perspective of a nurse.
Overview & History
2007-2008 – The National Advisory Council on Nurse Education and Practice (NACNEP) reviewed educational requirements (NACNEP, 2010);
1980 – The Independence Foundation (IF) provided $1 million (Hansen-Turton, Sherman, & King, 2015);
1980 – Funding was extended to $9 million;
1993-2003 – The IF covered nurse-managed health centers;
1998 – Reduction of financing;
2017 – Nursing Workforce Reauthorization Act of 2017 (US Senate Committee on Health, Education, Labor, and Pensions, 2017).
To establish a foundation for discussion, this problem was under strong debate since the development of the nursing profession. The growing number of hospitalized patients led to the rising demands for nurses while the shortage of workforce in the healthcare industry along with high maintenance costs continued to be the major problems of the industry (NACNEP, 2010). To fill these gaps, the management started paying more attention to professional characteristics of a nurse and his/her education and knowledge. Consequently, education became of paramount importance, and in 2007-2008, The National Advisory Council on Nurse Education and Practice (NACNEP) reviewed educational requirements and suggested highly valuable recommendations that continue to be regularly revised today (NACNEP, 2010).
Thus, another challenge linked to nursing education was highly connected to the fact that not all individuals were able to afford it. To address this matter, in 1980, the Independence Foundation (IF) provided $1 million to support nursing students while during the same year, the program was extended up to $9 million (Hansen-Turton, Sherman, & King, 2015). In 1993-2013, the funding was expanded to nurse-managed health centers while in 1998, funding was limited due to changes in healthcare legislation and budget deficit (Hansen-Turton et al., 2015). Similar problems have a tendency to exist today, and being highly dependent on national economy strongly worsens this situation. Recently, Nursing Workforce Reauthorization Act of 2017 was introduced to prolong funding of nursing education until 2022, but it still did not fill all the existent gaps (US Senate Committee on Health, Education, Labor, and Pensions, 2017). Overall, this problem is of paramount importance since advancing nursing education can have a beneficial impact on the quality of the provided services, minimize shortage of nurses, and make nurses more patient-orientated.
Key Points: Decreasing Number of Uninsured
Increasing number of individuals over 65 (American Nurses Association, 2016);
Average age of nurses: 42 (2000) and 44 (2010) (American Nurses Association, 2016).
Previous slides provided only a general overview of the lack of financing for nursing education. Nonetheless, one of the major consequences of this matter is the shortage of nurses. It incurs due to the growing number of individuals over 65 years old, and it implies that more medical assistance will be required (American Nurses Association, 2016). Meanwhile, the Affordable Care Act also had a dramatic impact on this segment, as it strongly decreased the percentage of uninsured individuals from 18.2% in 2010 to 10.5% in 2015 (see Figure 1) (Kaiser Family Foundation, 2016). As a consequence, a combination of these changes in the healthcare industry along with rising accessibility of medical assistance required to have more medical professionals in this area while driving nursing shortage. For example, currently, the industry does not have enough young professionals since the average age of nurses increased from 42 (2000) to 44 (2010) (American Nurses Association, 2016).
Key Points: Nursing Education
Another factor is high prices of nursing education since not all individuals can afford it. Subsequently, the percentage of nurses with the appropriate education is still low (below 80%) (Sheffield, 2016). Figure 2 displays that the number of nurses with bachelor degree experiences positive dynamics from 41% in 2000 to 80% in 2020 (Sheffield, 2016). This trend takes place due to the development of different legislation such as Nursing Workforce Reauthorization Act of 2017. Speaking of this act specifically, it mostly focuses on providing grants for advanced nursing education such as doctorate and master programs (US Senate Committee on Health, Education, Labor, and Pensions, 2017). It also offers financial support to the education of authorized clinical nurse specialists, but it is not enough due to the constantly rising demands for nurses. However, it is truly the first step in the right direction.
Key Points: Shortage of Nurses and Quality
Lastly, this issue is of paramount importance to resolve to diminish shortage. Currently, the existent situation has a negative impact on the patient-to-nurse ratio (from 4:1 to 8:1) (Sheffield, 2016). Meanwhile, it results in higher mortality rates due to the lower quality of provided services, as it is shown in Figure 3. Consequently, finding a solution will improve the overall quality of care in the country and increase levels of satisfaction among patients and nurses.
Potential Implications
Unfavorable nurse-to-patient ratio (4:1) (Sheffield, 2016);
High mortality rates;
Negative impact on wellbeing and health of the nation;
High levels of stress and burnout among nurses;
Limitations to professional development.
As you have probably noticed, the lack of funding has a direct impact on the quality of the provided services, as a patient-to-nurse ratio has a tendency to be unfavorable (4:1) (Sheffield, 2016). As a consequence, it increases mortality rates while 1/5 of them tends to be preventable (Sheffield, 2016). A combination of these factors has an adverse impact on the wellbeing and health of the nation. As for nurses, this issue requires working extra hours, and, as a consequence, it shifts levels of stress and burnout rates. At the same time, on behalf of nursing professionals, I would like to state that this matter limits their possibilities for professional development. For example, the lack of funding prevents nurses from continuing education to become more qualified while prospective students do not have enough finances to become specialists. Overall, devoting more funding will assist in enhancing the quality of the provided services and help nurses reach their professional and individual goals.
Conclusion
Lack of Financing:
Professional development;
National education levels;
Nurse-to-patient ratio;
Mortality rates;
Quality of services.
As a future advanced nurse practitioner and social leader, I highly hope that this presentation helped you discover the profound insights of the subject. It clearly displayed that the lack of financing of nursing education (grants) not only affected professional development of nurses and level of education in the country but also had a vehement effect on the quality of the provided services, mortality rates, and nurse-to-patient ratio. Consequently, expanding Nursing Workforce Reauthorization Act of 2017 by paying more attention to bachelor education and grants for talented students will have to be discussed profoundly during subsequent meetings. It can help reduce nurse shortage, minimize stress levels, comply with rising demands for qualified professionals, and change perception of the United States in the global healthcare arena. Thank you for your attention, and if you have any questions, please, do not hesitate to ask!
Revision of Nursing Workforce Reauthorization Act of 2017
Continue supporting Master and Doctorate programs;
Devote more financial resources to Bachelor degrees;
Provide grants to talented students.
I selected this issue since its consequences not only influenced the working environment and professional development of nurses but also had a substantial influence on mortality rates and quality of healthcare. As a nurse with active social position, I believe that this issue has to be resolved. Expanding funding under Nursing Workforce Reauthorization Act of 2017 will help satisfy the needs of nurses and students while simultaneously addressing the aspects that pertain to its global consequences such as shortage of workforce and low quality of healthcare.
Many children in New Jersey are still uninsured, although a third of all insured youth is covered by federal programs, Medicaid, and CHIP. This policy proposal outlines steps to expand coverage to create a system in which all children have access to high-quality, affordable medical services. At the moment, New Jersey’s health insurance presents barriers to low- and middle-income families, especially among minorities and immigrants. The idea of creating universal health coverage for children presents financial benefits for families and the government since it positively affects people’s health, academic performance, future health problems, and job opportunities. The policy brief outlines several recommendations on how to proceed with the expansion.
Introduction
Healthcare quality is a factor that impacts people’s lives and capabilities. One’s access to medical services is as crucial as the providers’ performance. Thus, it is essential to consider how local, state, and federal governments can make healthcare not only affordable but accessible to people with low income and highly limited funds (Kreider et al., 2016). Currently, the State of New Jersey, along with several other regions, participates in the Child Health Insurance Program (CHIP) (Larson, Cull, Racine, & Olson, 2016). Under this program and Medicaid, almost a third of all children in New Jersey are insured (Spencer et al., 2018). These initiatives decreased the rate of uninsured youth significantly, opening doors to other ideas such as universal coverage.
It is clear that health insurance is a way of accessing medical services for many Americans, including children. Nonetheless, affordable healthcare also has long-term benefits for young people. Children with Medicaid coverage, in comparison to those who are uninsured, perform better academically, skip fewer school days, and are more likely to finish high school (Brown, Kowalski, & Lurie, 2015; Center on Budget and Policy Priorities, 2017). Some of these consequences are long lasting – insured individuals have a higher chance of attending college, graduating, having fewer health-related problems and hospitalization, and earning more at their jobs (Wagnerman, Chester, & Alker, 2017; Wherry & Miller, 2016). Based on this data, is it appropriate to believe that the expansion of health coverage for children – the main proposal of this policy – will further contribute to the improvement of children’s quality of life.
Approaches and Results
To understand the potential of universal health coverage for children, one can consider the current progress in the state. According to the recent statistics, 19 states have higher rates of insured children, although not all of these areas are wealthier than New Jersey (Castro, 2019). The first potential issue is the federal policies on immigration. Strict anti-immigration policies discourage families from enrolling, even if they are legal citizens of the United States (Kreider et al., 2016). It is also possible that newly arriving residents are not aware of the possibility to insure their children under CHIP or Medicaid. The major part of information dissemination processes is performed in schools that may not address immigrant populations.
Another arising concern is health disparity among different population groups. As can be seen in Figure 1, uninsurance rates in the state indicate that Asian, Black, and Hispanic children lack coverage. Therefore, one may conclude that children of color remain at risk of inaccessible healthcare. One’s economic prosperity also plays a role in healthcare affordability. Children living under the federal poverty level and in middle-income families represent a large portion of the uninsured population (Boudreaux, Golberstein, & McAlpine, 2016). In the first case, some families cannot afford the premiums of the program, while children from families with a somewhat higher income are denied coverage.
Figure 1. The rate of uninsured children in New Jersey
At present, New Jersey is among the only two states in the US that require children to wait for 90 days without insurance before enrolling into a government program (Castro, 2019). This gap presents an issue for many children whose conditions, acute or chronic, require a quick medical response. Many states have eliminated a waiting period, thus solving this problem and ensuring continuous health coverage. The next potential flaw in the current program is its lack of attention to the needs of immigrant children. Undocumented immigrants face similar health risks as citizens, and children, in many cases, are not responsible for the decision to relocate. To compare, several states that cover undocumented children have lower rates of uninsurance than New Jersey, as seen in Figure 2.
Figure 2. The rate of uninsured children in states with coverage of undocumented immigrants and New Jersey
Implications and Recommendations
The benefits of universal health coverage presented above indicate that children’s lives can be influenced by affordable care significantly. Apart from that, the country and the state may see some positive effects as well. Thus, the main recommendation is to work towards expanding health coverage for children in New Jersey. The steps to implement this new policy include:
Addressing statewide obstacles to universal coverage. The elimination of a waiting period could incentivize more families to apply to the program since their children will not be at risk of being uninsured for an extended period. Moreover, New Jersey can completely dismiss premiums for families under the poverty level. These changes will decrease the collection of funds, but the federal fund and administrative savings should cover it (Murphy & Oliver, 2019).
Increasing awareness about the program. People from communities that are not contacted through school-based projects need to know about their opportunities. To connect with minorities, immigrants, and other vulnerable groups, the state can partner with local organizations and faith-based community leaders. Furthermore, additional funding should be allocated to public demonstrations and mentoring programs for parents (Flores et al., 2018).
Covering currently ineligible children. If families whose income exceeds the poverty level cannot afford medical insurance, their children should be approved for CHIP or Medicaid coverage. Immigration status should also be discarded as an exclusion criterion for health coverage. Children gaining access to healthcare in these new settings should be protected by rigid confidentially standards.
Conclusion
The health of individuals depends not only on the quality of medical services but also on their accessibility. In New Jersey, there exists a potential of reaching full health coverage for children. The benefits of this prospect outweigh the risks, and the policy of affordable healthcare for all children leads to short-term and long-term changes for children and adults. The recommendations for this policy address existing disparities, such as the access to services of minority communities, undocumented immigrants, and currently ineligible children. The issue of confidentiality is also important to acknowledge to protect children’s private information.
Chosen Official
The chosen official for this policy is Louis D. Greenwald, the Majority Leader for District 6 in the state of New Jersey. The assemblyperson’s affiliation is Democratic, and he supported and sponsored many bills related to the expansion of healthcare for children (New Jersey Legislature, 2018). While his exact stance on the present policy issue is not available, his other endorsements indicate that he could agree with the recommendations. One can contact him through email, using the form on the official website of the New Jersey legislature.
Dear Representative Greenwald,
As one of your constituents, I am writing to ask you to review a policy proposal of Universal Health Coverage for Children. This policy has the potential of increasing the rate of insured children in New Jersey and eliminating health disparities for vulnerable communities. Research shows that access to healthcare leads to children having better academic performance, future health, and job perspectives.
I look forward to hearing from you.
Sincerely,
[Name]____________________________________
[Address]___________________________________
References
Boudreaux, M. H., Golberstein, E., & McAlpine, D. D. (2016). The long-term impacts of Medicaid exposure in early childhood: Evidence from the program’s origin. Journal of Health Economics, 45, 161-175.
Brown, D. W., Kowalski, A. E., & Lurie, I. Z. (2015). Medicaid as an investment in children: What is the long-term impact on tax receipts? Cowles Foundation Discussion Paper, 1979.
Castro, R. J. (2019). It’s time for all kids health coverage. Web.
Center on Budget and Policy Priorities. (2017). Medicaid works in New Jersey. Web.
Flores, G., Lin, H., Walker, C., Lee, M., Currie, J., Allgeyer, R.,… Massey, K. (2018). Parent mentoring program increases coverage rates for uninsured Latino children. Health Affairs, 37(3), 403-412.
Kreider, A. R., French, B., Aysola, J., Saloner, B., Noonan, K. G., & Rubin, D. M. (2016). Quality of health insurance coverage and access to care for children in low-income families. JAMA Pediatrics, 170(1), 43-51.
Larson, K., Cull, W. L., Racine, A. D., & Olson, L. M. (2016). Trends in access to health care services for US children: 2000–2014. Pediatrics, 138(6), e20162176.
Murphy, P. D., & Oliver, S. Y. (2019). FY2020 State of New Jersey budget in brief: Building a stronger and fairer New Jersey. Web.
New Jersey Legislature. (2018). Louis D. Greenwald (D). Web.
Spencer, D. L., McManus, M., Call, K. T., Turner, J., Harwood, C., White, P., & Alarcon, G. (2018). Health care coverage and access among children, adolescents, and young adults, 2010–2016: Implications for future health reforms. Journal of Adolescent Health, 62(6), 667-673.
Wagnerman, K., Chester, A., & Alker, J. (2017). Medicaid is a smart investment in children. Mortality, 6(7), 8-9.
Wherry, L. R., & Miller, S. (2016). Early coverage, access, utilization, and health effects of the Affordable Care Act Medicaid expansions: A quasi-experimental study. Annals of Internal Medicine, 164(12), 795-803.
Nurse involvement in political policy is essential because it ensures that standard and quality health care is facilitated for all citizens. Nurses can get involved in policy and politics through voting, engaging in nursing operations that involve political issues, writing articles involving health affairs to ministers, and also by assuming a leadership position in the healthcare system (Wilson et al., 2020). It is evident in a real-life situation that most nurses engage only in low-intensity actions such as voting and are reluctant of engaging in high-intensity levels of policymaking Therefore, political activism for nurse practitioners is a significant step to perfecting the healthcare sector.
Lack of nurse involvement in legislation results in unpleasant working conditions for nurses, lack of vital resources in medical institutions, such as medications, and substandard patient care. Political activism in nursing entails a plan for nurses to become vital in creating, impacting, and supporting healthcare policy that influences the health of citizens (Florell, 2020). Activism can be achieved by involving healthcare policy education as a subject in nursing schools, and nursing institutions engaging in policy changes hence acting as an epitome for their students. Besides, employers can also encourage political activism by offering employed nurses time and opportunities to influence the nation and federal policy (Salvage et al., 2020). Political activism is essential because it creates awareness regarding the importance of nurses engaging in the political system.
In conclusion, it is evident that political activism plays a major role in the nursing industry. It inspires nurses to participate in politics with the intent of enhancing people’s welfare by providing them with high-quality, standardized healthcare. Additionally, education pertaining to the political system in nursing schools is essential because it helps nurses to raise issues affecting them. It also encourages them to engage in both low and high-intensity levels of policymaking.
It is hard to disagree that the healthcare sector plays an integral and vital role in the lives of people on a daily basis. Some persons may find it challenging to understand how healthcare and policymaking can be connected. However, precisely the latter allows medics to introduce new and more effective measures to promote health education, enhance their care for patients, get access to better resources and training, and make sure that guidelines are followed. Without efficient policies and agenda items, it is impossible to reduce levels of diseases and improve healthcare outcomes. Thus, one of the issues that are of special concern in today’s world is cancer (National Cancer Institute, 2020). Public health education and means of this condition’s prevention should be disseminated by nurses, which is why the Oncology Nursing Society’s agenda item related to cancer prevention is of vital importance.
Significance of the Selected Policy
As mentioned above, cancer is one of the primary and most dangerous concerns of today’s nurses and patients. This is one reason why the selected agenda item is of increased value and interest (National Institutes of Health, 2021). If it appears to be successful, one may expect that the cancer rates will decrease drastically. In other words, people will become healthier because they will have proper access to various processes required to prevent, diagnose, and treat cancer, as well as get more educated about this condition (Oncology Nursing Society, 2021). Overall, one may state that there are no reasons to find this policy unpromising or not valuable enough. If there is a need to improve cancer outcomes and reduce the incidence of various types of cancer, especially lung cancer, this agenda item is needed.
Analysis of the Issue
To begin with, as stated by researchers, cancer is one of the leading causes of death. The statistics are quite disturbing: “in 2018, there were 18.1 million new cases and 9.5 million cancer-related deaths worldwide,” and these numbers are expected to grow to 29.5 million and 16.4 million by 2040, respectively (National Cancer Institute, 2020, para. 16). People cannot get adequate access to detection, prevention, and treatment programs due to the lack of funding or barriers created by social determinants of health (Trasta, 2018). Consequently, the problem needs to be examined, so the further paragraphs are dedicated to the issue’s history, those people it affects, and how the agenda item can be helpful.
The History of the Issue
When discussing the history of the identified problem, the focus should be placed on the limited access to education and resources that would help reduce rates of cancer worldwide. Those efforts that organizations and authorities put into eliminating healthcare barriers, educating nurses and patients better, and controlling e-cigarette and electronic nicotine delivery systems prevention more effectively are not enough. For example, “governments, industry, and philanthropies have been investing massively into research <…> to develop new diagnostics, therapies, and preventive measures” (Trasta, 2018, para. 3). However, it is not clear whether an appropriate part of fundings goes to studying and addressing cancer.
In addition, one may say that resources are not usually allocated equally within major disease research. Thus, “some types of cancer appear to be relatively over‐ or underfunded,” and many people find it challenging to receive adequate diagnosis and treatments (Trasta, 2018, para. 5). For instance, although lung cancer kills more patients than breast cancer, governments spend much more money on the latter (Trasta, 2018). Thus, even though current efforts are more serious and efficient, more attention should be paid to increasing federal funding for cancer programs, ensuring barrier-free cessation insurance coverage, and eliminating social determinants of health.
Persons and Groups Affected by the Issue
Overall, it is possible to say that a vast number of people are impacted by the identified issue. First of all, they are patients themselves, including those who are aware of their diagnosis and those who are at risk of developing cancer, such as smokers. Their friends and families are another group affected by the negative features of the problem. Third, nurses and other medical workers do not have access to adequate resources for the “screening, education, early detection, and prevention” of this disease (Oncology Nursing Society, 2021, p. 1). It means that they also experience the impact of the problem addressed by the policy. Finally, the authorities can also feel the effects of the increasing cancer rates because these growing levels put pressure on the government, requiring them to re-allocate their resources and send more funding to solve the issue.
Expected Effects of the Policy on Nurses and the Particular Nurses’ Association
It is possible to state that the selected agenda item will have numerous positive impacts on nurses in general and the Oncology Nursing Society. The first such effect is the enhanced working conditions of nurses as they will receive increased federal funding. As a result, there will be better access to CDC’s programs related to cancer prevention, early detection, education, and screening, as this is the first point of the policy (Oncology Nursing Society, 2021). Further, “availability and utilization of treatment services for smoking cessation” will be ensured, again affecting nurses’ work (Oncology Nursing Society, 2021, p. 1). Finally, medical workers will receive an opportunity to participate in the elimination of the negative impacts that social determinants of health have on accessing “advances in cancer prevention and early detection services” (Oncology Nursing Society, 2021, p. 1). Overall, the effects the selected society and nurses in general will experience are all related to their enhanced working conditions and opportunities to help society.
Key Stakeholders
Generally, one may agree that the key stakeholders of the identified problem are the persons affected by it. As a result, this presentation may be interesting to cancer patients and their families and friends because it is essential for them to learn that some practical efforts will be made to solve the issue (Stover et al., 2021). Further, representatives of the government can also attend the meeting to learn about the increasing need to enhance the control over e-cigarette and electronic nicotine delivery systems prevention (Stover et al., 2021). Third, smoking persons may find the data and facts outlined in the presentation to be quite informative. Finally, as mentioned in the previous paragraph, nurses and other medical workers should also learn about the agenda item’s ideas to be more aware of the measures to address cancer prevalence.
Conclusion
To draw a conclusion, one may say that the value and necessity of the selected agenda item cannot be overestimated. Considering the severity of cancer and the lack of appropriate measures to address the growing rates of cancer mortality and morbidity, the ideas proposed in the Oncology Nursing Society’s policy may help reduce many negative effects. Numerous people are impacted by cancer-related problems, including nurses, patients, the community as a whole, and authorities. Consequently, all these groups are also the key stakeholders who should be interested in and support the proposed agenda item.
Modern cultural domain in general and media in particular address a multitude of issues representing different populations and their concerns. However, despite the advancement of inclusivity and diversity in education, the workplace, and other spheres, the film and television industry is still a work in progress in terms of equality of representation. The disparities are observed in racial, ethnic, gender, and age-related representation on screen and in the workplace behind cameras. Indeed, according to Eikhof (2017), women are more likely to leave their work in the film-making industry in their 30-40s compared to men. Moreover, as of 2018, in Hollywood, “only 1.3 out of 10 film directors were people of color, and less than 1 out of 10 film directors were female” (“Film Independent Inc.,” 2021, para. 2). This statistic resembles a similar tendency in the population of film writers.
Fortunately, multiple nonprofit organizations are working to bridge the gap in diverse populations’ representation in media. One of the most prominent in the USA is Film Independent. The organization’s website might be accessed through the following link. Web. According to the website, Film Independent is a 501(c)(3) nonprofit organization, its primary field of work of which is “help filmmakers make their movies, build an audience for their projects and work to diversify the film industry” (Film Independent, 2021, para. 2). The company aims to make a change in the film-making industry by bringing together professionals and film lovers. The mission of Film Independent is “to champion creative independence in visual storytelling and support a community of artists who embody diversity, innovation, and uniqueness of vision” (Film Independent, 2021, para. 1). The organization initiates numerous projects, programs, events, and meetings to promote diversity in film-making.
Organizational Overview
As one of the largest nonprofit organizations supporting independent filmmakers, Film Independent has gathered a populous community of members and supporters. The organization was created in 1981 when a small group of directors and film-making enthusiasts started gathering for creative meetings to discuss opportunities for developing independent production (Film Independent, 2021). As the group grew and new projects emerged, the organization began to launch events dedicated to promoting and supporting diversity in the entertainment sector. One of the first projects initiated by the organization, which continues to strive now, is the Film Independent Spirit Awards, launched in the early 1980-s (Film Independent, 2021). Since its beginning, the organization has managed to impact the community of independent artist-driven film-making significantly.
The organization is very transparent in its operations, programs, projects, and engagement with the members. According to the annual impact report of 2020, Film Independent has served and engaged over 7,500 members across 49 US states and 47 countries (Film Independent, 2020). Notably, 50% of Film Independent’s members are women, and 39% are representatives of the BIPOC (Black, Indigenous, and People of Color) communities (Film Independent, 2020). Furthermore, both the board of directors and the organization’s staff are comprised of a diverse population, thus advocating for the representatives of the LGBTQ, BIPOC, people with disabilities, and other under-represented communities.
The current projects being implemented by Film Independent include education, promotion, and production with the priorities set on inclusion and equity. According to the organization’s impact report, Film Independent “connects filmmakers to the resources and networks they need to advance their projects” (Film Independent, 2020, p. 8). Overall, there are several major projects, namely the above-mentioned Film Independent Spirit Awards, Film Independent Presents, Artist Development programs, the Project Involve program, Global Media Makers, as well as numerous events organized by the nonprofit (Film Independent, 2021; “Film Independent Inc.,” 2021). Spirit Awards has been awarding filmmakers for more than 30 years, with 39% of female nominees and 22% of nominees from the BIPOC communities (Film Independent, 2020). Film Independent Presents is “a year-round program offering screenings, conversations and other unique cinematic experiences including the acclaimed Live Read series” (Film Independent, 2021, para. 5). Artist Development programs and filmmakers’ education programs aim to organize numerous workshops, lectures, meetings, and classes to engage filmmakers in independent work and provide resources, tools, and services for their advancement.
Furthermore, innovative approaches are being used to advance and enlarge the community of the Film Independent members. The Project Involve program is one of the most directly addressing the needs of the underrepresented communities since it provides career opportunities for their representatives. On a worldwide scale, Film Independent has launched Global Media Makers, which is a “mentoring and cultural exchange program that connects visual storytellers from around the world with leading US entertainment professionals” (“Film Independent Inc.,” 2021, para. 10). A comprehensively and informatively organized user-friendly webs-ted provides all the information about the organization, its current projects, the schedule of upcoming events, and how people can engage with Film Independent.
Engagement
Conclusively, Film Independent has made a significant impact in media and film-making by providing tools, services, and platforms for talented artists from underrepresented communities to advance their careers. To join the nonprofit or contribute one’s efforts or support to the organization, one might join and like its Facebook, Twitter, LinkedIn, and other social media pages. Notably, the official website of the nonprofit provides detailed guidance for those seeking opportunities to become a member or supporter. For example, the website’s home page contains a banner inviting visitors to support Project Involve Short Films by following several steps. Overall, Film Independent is a successful and promising nonprofit organization capable of driving diversity trends in the contemporary media world. Therefore, it would be a significant professional opportunity to join their team and advance their advocacy principles by helping fulfill their mission.
References
Eikhof, D. R. (2017). Analysing decisions on diversity and opportunity in the cultural and creative industries: A new framework. Organization, 24(3), 289-307.
In the recent years, particularly with the popularization of social media apps and other internet means of communication, the term Slacktivism has taken root. Alternatively called hashtag activism, it can be described as a particular brand of activism made possible through the online sphere. Although the two terms do have some definitive qualities, they are mostly used interchangeably in the online sphere. The usual activism is a process that involves pushing for, or supporting a particular sociopolitical cause. It is usually accomplished through the means of public advocacy, direct action, or protest. Activism is mainly directed at enacting change in society, promoting equality, morality and justice, as well as spreading awareness. While each person’s individual advocacy might differ, its presence is design to create discourse in the public sphere and lead to change. Knowing this, one can now characterize slacktivism in contrast with its regular counterpart. The emerging term is made by combining the words activism and slack, instantly creating negative connotations with its usage. Generally, the word has come to symbolize performative activism, one that is done mainly through the internet. The process involves people posting on social media about their cause, and using hashtags to spread the message. Slacktivism is mainly seen as activism with a lack of impact, one that requires almost no effort, and does not have a significant impact on the world at large. The similar term, “hashtag activism”, is usually used to mean the same thing, or refer specifically to the use of hashtags as a means of lazy activism. Issues most discussed by this kinds of activity involve social justice problems, cases of racial discrimination or other topics that cause a lot of upstir online. It is necessary to note, for the purposes of this discussion, that activism through the internet in general is a possible and effective way of enacting change, although usually in other forms of influence. The use of the online sphere can be relegated to gathering people for in-person campaigns, as well as the promotion of online petitions. Slacktivism, on the other hand, is an ineffective kind of online activism, one which is mostly done to virtue signal to other people.
The topic of slacktivism is also considered to be quite contentious in this day and age, with people arguing about both its positive and negative implications. For the possible benefits, it can be said that even this form of activism still helps to spread progressive messages, in addition to serving as an easy introduction to change for people interested (What is slacktivism and is it even helping? 2020). For people that have not yet hit legal adult age, or cannot participate in the usual activism, the process of spreading a message or signing a petition can be the only way to enact change, or at least spread their own beliefs into the world. Alternatively, it can also be said that slacktivism is note regarded well in online communities or political circles, and for valid reasons. First of all, it is largely ineffective at solving real-life issues or addressing problems in any meaningful way. A message online or a post spread around is unable to affect government, society, or the justice system, which makes such activism largely useless (Lodewijckx, 2020). Secondly, it can be said that slacktivism is more prominently used to amass social clout, or create an appearance of caring about a subject, it is the bare minimum of what a person can do while also not appearing indifferent. Lastly, the spread of such methods is counterproductive to enacting real change, as it over overshadows more complicated or difficult methods of activism in favor of simplicity.
Following a successive revolution in Tunisia where protesters forced the then president Ben Ali out of position, it seemed as what people called an Arab revolution. However, in perhaps the most unexpected development in the modern Egypt history, the Egyptians also decided to follow the road used by Tunisia to end the 29 years dictatorship of President Hosni Mubarak.
On 25th January 2011, young protestors came to the streets in the wake to push Mubarak to announce his intention not to participate in the coming election and these protestors used the social media to organize a great number of people that culminated to the ever-larger nationwide protests (Sharp 2).
On 28 January, thousands of protestors throughout the country were on the streets in what they called peaceful demonstrations where approximatly100, 000 protestors turned up in Cairo alone (Sharp 2). After a few days, the government learnt the role of the media and internet during the protests and the magnitude of the protestors’ growth; they put limits all media including internet (Sharp 2).
The government arrested Gael Ghonim, a young Google executive who created a Face book group Khaled, the main protestors’ social networking site (Sharp 10). The protests further continued until the resignation of Mubarak on February 11. However, the status in Egypt even after the resignation of Mubarak is not at rest.
In the past few weeks there has been instability in Egypt as the citizens are not contempt with the army’s rule and the preparations for 28th November elections. In this paper, the focus is on the view and the role of the tactical media and the media activists in these protests.
What do you think about tactical media and media activism in relation to Egypt protests? Rita Raley (1) describes tactical media as “interventional media art practices that engage and critique the dominant political and economic order.” The practitioners of this media engage in well crafted politics of disruption, intervention, and education.
The tactical media practitioners use media away from the mainstream media. They spread information that is not in the mainstream news commonly referred as media activism (Rita 5). In addition, media activism involves the use of media and communication technology for social movement as well as the attempt to change media and communication policies (Rita 6).
Tactical media and media activism featured highly during the Egypt protests. During the protest, it is evident through the attempts of the government to stem the media coverage of the protest. The recent protest is characterised by use of media activisms, which comes out through the issues that caused the protests.
As mentioned earlier the practitioners use political disruption. In this case, the protests are on the proposed principles of constitution, and the worry that the military would be shaped as a state within a state. In the January’s protests, the government blocked the internet access, traffic as well as SMS but this did very little. The protestors used mobile phones, social networks such as Face book, twitter and You tube to pas information, videos, images, and stories.
They also used other web, third party apps, proxy websites, software, and VPN where this tactical media passed information that had little truth in Egypt and to rest of the world. Dotson A, 2011 in strategic social media J412 at the University of Oregon asserts that even long before the newscast reported of the protest in Egypt, people in New York new about it through social media and therefore social media played a great role during this protests.
What Are The Roles Played By Tactical Media And Media Activism In Egypt During Protests? The tactical media and media activism played a great role during the Egypt’s protests. First, the initial start of the protests started through the social media. People sent incitement information through the social media against the Mubarak’s rule and his failure to declare his stand not to participate in the next elections.
Further, after the eruption of the protests the number grew larger due to communications through the social media. The protestors used mobile phones, Face book; You tube and twitter to pass information and this aggravated the situation in Cairo as well as in Egypt. This media was used to pass information from the ground that was more exaggerated in order to catch the attention of the World and therefore played a role in seeking sympathizers from other parts of the world.
The media passed pictures and video of the inhuman acts by the riot police to the protestors, which called for the nations like USA to intervene.
The intervention of other nations to the situation in Egypt even made things worse as this media encouraged the protestors of the worldwide support. In addition, the use of social media gave the protestors the confidence to continue as it made them aware that they were not alone in this fight. They therefore, believed even if they suffer, they would not suffer alone. Thus, the media acted as a tool of encouragement.
Conclusion
Media and communication technology is of great importance to the world because it keeps the world in touch of the happenings as well as enlightening the people. Further, it used to unite the people for a common goal such as the fight against drug abuse, environmental conservation and HIV/AIDs control. However, it is dangerous if used for the long purpose as it causes a stable country to be ruined as for the case of Egypt.
Works Cited
Rita , Raley. Tactical Media. New York. University of Minnesota. 2009. Print.
Sharp, Jeremy. Egpyt: The January 25 Revolution and Implications for U.S. Foreign Policy, Washington DC, USA. Congressional Research Service. 2011. Print
The mass media is a powerful component for social movements. Getting good media coverage strongly affects the way different social events are identified in the public eye. The comprehensive media coverage also makes messages stronger.
The media devotes attention to, for example, a social movement because they think the event will make interesting news.
Lopes (2014, p. 3) affirms that social movements propagated by activist groups have been carried out in many different modes and at different levels in an attempt to transform societies. Scholars have regarded the emergence of social movements and its influence on the society as world-wide phenomena.
This paper examines the complex nature of the interaction between mass media and social movements or activist groups. The essay will also discuss audiences alongside the relationship between mass media and activist.
This paper proves that mass media is a crucial source for political actors and activist groups with volatile and adversarial qualities, which in turn limit their ability to secure public legitimacy (Kielbowicz & Scherer 1986; Gamson 1995, p. 85 in Baker 2007).
Rise of social movements
Loren von Stein, a German Sociologist introduced the term social movement into academic study in the 1950’s. He described the idea of launching the movement as a unitary process that is developed by working class individuals when their self-conscious awakens and they gain power (Tilly 2004 in Lopes 2014, p. 3).
However, according to some psychological research, a social movement is described as a “contagion” among irrational people who lack a clear view of their future and are unable to strategically act and organise their plans. Such people have a different and negative perspective of life.
Schwarz stated that, “participants in social movements are at least as rational as those who study them” (Schwarz, cited in Buechler 2000 in Donk, Loader, Nixon & Ruchet 2004, p. 6).
Subsequently, more descriptions of social movement have emerged over the years. Tarrow (1994, in Lopes, 2014, p. 3) defines it as the unified challenges faced by people who have the same purpose for solidarity and constant interactions with social difficulties, the elites and authorities.
It suffices to mention that a social movement can be an important mechanism for social and political change as it has the ability to change the institutionalised politics that have already occurred (McAdam 2001 in Lopes 2014, p. 3).
Additionally, these movements might arise to create a clear vision about human action, particularly the way that activist voluntarily collaborate and mobilize (Cameron 1974 in Lopes 2014, p. 3).
A social movement has also been described as an organisation, which interacted in political and cultural disagreements based on “shared collective identity” (Van Laer & Van Aelst 2010, p. 1147).
Mass media and activist groups
There have been numerous activist groups that have been formed over the centuries. However, after the introduction of mass media, such groups became viral. They are not only larger, but such groups get support from all over the world. Mass media targets the largest crowds, or the audiences, possible.
Additionally, the introduction of mass media via the internet helped make social movements global. Currently, a social movement in New York can have supporters all the way in Africa. A recent example that can be used is that of the gay rights movement.
The movement started in New York, but it attracted supporters and critics alike from all over the world due to both mass media and social media.
It is necessary to point out that traditional mass media always has an alternative angle to airing such movements. In fact, they will air the movements whenever they feel there is a good story to sell within. Drawing from the gay movement, one can easily note why mass media picked up on the story.
The first reason is that it is controversial, thus, many people will watch it. The second among many reasons is that it targeted critics, and some presidents came out boldly banning gay activists in their countries.
According to Gitlin (1980) this interplay between media and the movement is similar to the relationship between journalists and politicians in many ways. Mass media and activist groups have a mutual dependency type of relationship. In simpler terms, the two help each other grow.
Drawing again from the example of gay rights movement, one can see that the media benefited from the movement as much as the movement benefitted from the media.
The media benefitted from the movement in that many people tuned into their television and radio sets to get updates about the movement. In addition, many people took to social media platforms to discuss and follow the movement.
It is crucial to point out that this movement turned global, after many of the activists took to both the traditional and the new mass media avenues to express their interests.
On the other hand, a majority of mass media avenues wanted exclusives on the story due to the magnitude of traffic the movement attracted.
Resultantly, many people would tune to the avenues that provided the detailed stories of the movement. Thus, the mass media got traffic through the story, while the movement got supporters due to the coverage provided by the mass media.
On the contrary, Ruchet (2004) defined the nature of this relationship as an asymmetrical one. This means that one side needed the other more. Thus, social movement appears to be in a vulnerable position as it seeks media attention, most of the time, as compared to the media seeking social movements.
Mass media and the political elite
Participatory democracy states that everybody should have the right to access all the information they seek, as long as the information will enable the individuals and social groups to participate in the building of the society.
Hence, the media, in any capitalistic system, should prevent manipulating knowledge by politic elite and some powerful economic source (Doctor 1994 in Wongrujira 2008, p. 30).
Barker (2007, p. 6) argues that there are different views on the components of participatory democracy. For example, there are scholars who argue that public protest should be initiated by political elites and corporations, not individuals and civil society.
These scholars claim that protests by individual people and the civil society only benefit a small group of people, and not the whole society. The existing relationship between politics and social movement has been a source of debate over the years.
For the past several decades, social movements have had relationships with institutional, political action groups (Earl & Rohlinger 2012, p. 8).
In simpler terms, mass media, or media in general, may not be the only source with effect to mobilisation of the society, but they have significant impact on the political elite. The media literally shapes the political elites’ response to the activist groups during protests or any other activities.
Many studies have examined various types of action and noticed a, “hierarchy of political participation” (Marsh 1977, Barens & Kaase 1979, Dalton 1996 in Van Laer & Van Aelst 2010 p. 1150). The role of politics has been associated with activities, whether intensive or moderate, of activists.
Moreover, other studies claim that there are cases where social movement may be more independent of authority, especially when the events under the spotlight of mass media, in this case authority, choose to create distance and not use repression against any activities in order to prevent violence.
In reporting social movement and activism, it is clear that the political elites often ignore collective action. Collective action in this sense refers to what the group wants. For example, the gay rights movement wanted more countries and governments to secure the rights of the gay people, including the right to get married.
Political elites have been known to decipher social movements using four components. Worthiness, unity, number and commitment (WUNC) of a by social movement will not only attract political support, but it will also attract media coverage (Tilly 2006 in Vliegenthart & Walgrave 2012, p. 394).
The role of the media in social events, regardless of whether it is political, economic, or environmental, as well as the type of the media, whether old or new and the autonomies they have, can be problematic. Their description of events and factors that led to the events described can cause more chaos than good.
Additionally, their desire to impress and gain traffic and power can reduce the main goal of the activist group to seem needy and unimportant. The general interest of mass media and activism has been subject of interest for many studies as they examine social movement demonstration in press.
One study that was done to determine the relationship between the two was concentrated on a protest that was held against the Vietnam War in the United Kingdom (Halloran 1970 in Conboy & Steel 2014).
The event was held in London were the demonstrations attracted a significant number of protesters, who marched peacefully. Indeed, there was some little fracas here and there, but the entire protest was described as very peaceful.
It is interesting to note that the media only highlighted the small violent acts that took place during the protest. They paid no attention to the other seemingly peaceful walk.
The repetition of the violent scene made it appear more rogue than it really was. This misinterpretation of the political event, and the negative media coverage they gave, shows the problem between democracy and the media (Halloran 1970).
The way media treats some social movements can indicate whether the movement had some political support. Activist groups that garner more political support will most likely have their activities broadcasted all over the world.
In such instances, as mentioned, the political elites in play usually have something to gain from the movement. Additionally, many political elites would not come out openly and claim that they support an activist group.
In the same breadth, however, there are some rare cases where they have come open about their support for activist groups, and reasons behind their support.
New media and independency
The emergence of new media has reduced the impact of traditional media. Therefore, many activist groups have turned to new media to express their issues. It suffices to mention that new media has provided various global platforms, which the activist groups can use to get their messages out.
New media involves platforms like Twitter, Facebook, Google+ and even the web pages created to support activism among other things. The interesting thing about new media is that it can be linked into one mass media that targets the world.
Posts and views on social movements that are posted on Facebook can be shared to web pages and other social media platforms. Thus, the story about the movement becomes bigger.
There are studies that claim that new media has improved communication worldwide and made it easier for people to access information and engage in events with more freedom (Shriky 2011 in Lopes 2014, p. 8).
Social media has indeed become part of everyday life for the activists, citizens, governments and even NGOs as they all engage with the social media sites.
Many scholars confirm the importance of social movements to engage in social media as they will be able to mobilise millions of people in different countries to support their cause. This, in turn, makes their movement much more pronounced (Lopes 2014, p. 9).
The Egyptian revolution 2011 is a good example that shows the result of using social media effectively and freely with the availability of the resources. The new wave of media activism changed a lot of things and on the top of the list is communication structure.
It has new forms, alongside the new technology, which lower communication costs. For example, creating websites and posting all activists is cheaper compared to doing it using the traditional media. Moreover, there is less repression coming from the new media compared to the traditional media.
Furthermore, new media allows activist groups to help each other as their connection facilities are more accessible. Indeed, there are some activist groups that aim to democratizing media and new media has made this easier for them (Carroll 2006)
Conclusion
In conclusion, mass media and activist groups have a mutual dependency relationship. Available research shows that the relationship between mass media and social movements has been debated over decades.
Establishing a definition needs compromise, as well as a rational understanding of different things that interfere with the relationship, such as politics and corporations. The political elites are specifically prone to frustrating the relationship because many activist groups target political entities.
In addition, the relationship between media and social movements has been shaped by the emergence of new media. New media, in this sense, includes social media and blogs. These platforms allow the activist groups to reach millions of people all over the world and ask for their support.
Similarly, new media has eased the tension between social movements and politics. As mentioned, on numerous instances, political entities would try to frustrate the movements by restricting the traditional media.
Social media and new media in general have made this restriction impossible. Thus, people are not only free to join social movements, but they are also free to look for information on different activist actions.
Since the turn of the century, the business environment in the contemporary world has become more dynamic and competitive. This phenomenon has been necessitated by factors such as globalization, advancements in technology, increased access to education, economic empowerment, as well as the development of viable and effective business models (Gordon & Ringe, 2018).
The investment culture across the world is highly dependent on the ability of financial institutions and investors to collaborate in addressing various issues relating to corporate governance and the principle of the common good. In the recent past, some of the notable global trends relating to sustainable business practices are shareholder activism and responsible investment. This essay will critically analyze the advantages and disadvantages of the two trends in relation to their impact on decision-making for corporate social responsibility.
Shareholder Activism
According to economic experts, shareholder activism refers to a process through which an individual with equity in a publicly traded corporation attempts to use his or her shareholder rights to pressure the management team into making changes (Carlisle, 2014). Shareholders are partial owners of a corporation. Thus they have rights they can exercise to influence a change of behavior. However, achieving this feat is highly dependent on one’s share classification.
Major shareholders have a greater influence over the running of a corporation compared to minority shareholders who only have limited options such as proxy battles, publicity campaigns, litigation, as well as writing formal proposals that are voted for during annual meetings (Carlisle, 2014). An activist shareholder focuses on pressuring the management to make financial and non-financial changes that range from the corporate policy, financing structure, disinvestment, adoption of environmentally conscious policies to cost-cutting measures, among others (Reed & Storrud-Barnes, 2015).
Several publicly listed companies in the United States have been the subject of activism where shareholders mainly ask for disinvestment from politically sensitive countries and revision of sustainability strategies. Reports indicate that the efforts of activist shareholders have been escalating at an alarming rate over the last decade. This observable fact has been influenced by the high dissatisfaction of shareholders with the poor performance of the management team, which is often characterized by elements such as low profitability, reduced support for workers’ rights, and lack of accountability (Walker, 2016).
Advantages of Shareholder Activism
Research has shown that shareholder activism has a number of benefits to a corporation in terms of making the right corporate social responsibility decisions (Gong, 2013). Experts argue that shareholder activism has numerous benefits to an organization as long as it is done at the right time, using the appropriate channels, and with a precise intention. For it to have a positive impact on a corporation, it is important to ensure that its objectives reflect the long-term interests of everyone and not just a group of shareholders.
The main reason for this is that it influences the manner in which decisions are made during annual meetings. Stakeholders whose interests are not considered during a campaign to tend to conduct protest votes that often compromise the ability of a corporation to meet its goals in an objective manner (Goarnova & Verstegan, 2014). Over the years, shareholder activism has helped a number of companies that were on the blink of collapsing to get back on track.
One major advantage of shareholder activism is that it increases the accountability of the management team. According to research, two out of three activist campaigns tend to achieve their objectives (Krause, 2018). This is an indication that shareholder activists play a crucial role in ensuring that organizational leaders are more accountable with regard to the decisions they make on behalf of shareholders.
This improves a corporation’s reputation, thus enhancing the capacity to promote its corporate social responsibility initiatives. In the contemporary world, corporations have an ethical responsibility for environmental stewardship as people struggle to manage the effects of global warming (Krause, 2018). Therefore, it is important for shareholders to ensure that organizational leaders are held accountable whenever they fail to develop and adopt environmentally friendly policies. Research has shown that the success of a corporation’s corporate social responsibility initiatives helps to attract investors and earn more goodwill from the public with regard to the products and services they offer (Reed & Storrud-Barnes, 2015).
The second advantage of shareholder activism is that it plays a pivotal role in promoting sustainable and ethical business practices. For example, in cases where a shareholder activist is seeking a corporation’s management to disinvest from a politically sensitive country, the long-term value is achieved because it helps to solidify the existing assets, prevent the share value from dropping, as well as maintaining good profit margins. Economic experts argue that every corporation should focus on adopting sustainable business practices that complement its objectives for corporate social responsibility initiatives (Behar, 2016).
The management team should ensure that the process of decision-making adapts an inclusive model that allows all the relevant stakeholders to express their opinions and interests. The importance of involving all stakeholders in making crucial decisions is the fact that it manifests their value with regard to achieving the long–term objectives of a corporation (Krause, 2018). In turn, this helps a company to gain a competitive advantage in its respective markets because of crucial elements such as improved employee retention rate, increased output from the workforce, and a strong brand (Butu, 2013).
The demands of shareholder activists help to reorient a corporation’s policy framework towards promoting the values of responsibility and sustainability, which are crucial to the success of corporate social responsibility programs. In addition, it is important to note that such programs are often a direct reflection of the values that a company promotes through its activities (Butu, 2013).
Therefore, it is necessary to ensure that the approach applied in decision-making is well informed and guided by the same values. Reports indicate that a poorly coordinated decision-making process that lacks inclusivity and guiding principles geared towards achieving sustainable business practices often results in a disoriented corporate social responsibility strategy. The financial value of shareholder activism often reflects in the intensity of corporate social responsibility programs a company chooses to support (Goarnova & Verstegan, 2014).
Disadvantages of Shareholder Activism
Shareholder activism is a fully-fledged industry that has been in existence for quite some time. This phenomenon is evidenced by the existence of elements such as activist funds, activist newsletters, activist databases, and activist conferences that give an indication of the pivotal role they play with regard to influencing the running of publicly listed corporations (Butu, 2013). Research has established that shareholder activism can negatively affect decision-making for corporate social responsibility if it is not done with honest intentions (Grewal, Serafeim, & Yoon, 2016).
One of its notable disadvantages is the fact that is it affects the credit rating of an organization in a negative way. Although shareholder activism helps to strengthen corporate governance within an organization, the biggest challenge lies in the constant pressure put on the management teams with regard to their investment decisions. In turn, this affects the amount of money available for other crucial activities such as corporate social responsibility initiatives, paying dividends, and buying back shares, among others (Hartmann, 2014).
This does not create an ideal situation for credit investors because of an increase in the net advantage. In addition, the financial and non-financial changes that shareholder activism influences within an organization often conflict with the needs of corporate debt holders, thus compromising the effectiveness of decision-making.
Another notable disadvantage of shareholder activism is the fact that activists are not always right and often look out for themselves. Thus their investment horizon may be different from that of the corporation (Gantchev, 2013). Studies have shown that one of the main objectives of shareholder activists is convincing shareholders to buy into their agenda through aggressive media campaigns that portray them as having great concern for a corporation’s welfare (Filatochev & Dotesenko, 2015).
However, the truth of the matter is that they primarily focus on pressuring the management to make changes only in areas that meet their interests. Reports indicate that they often bank their campaigns on the perceived notion within the industry that they are always right due to their extensive experience in the investment sector. In most cases, this turns out to the opposite because their timing is often off with regard to the objectives of their activism and the benefits they project a corporation will get by making the proposed changes (Gantchev, 2013).
Investors ought to keep this in mind when making decisions relating to a corporation’s mission and objectives for corporate social responsibility initiatives. The main reason for this is the fact that the ability of any corporation to be responsible and maintain sustainable business practices is highly dependent on the degree of influence that its shareholders have on the decision-making process (Filatochev & Dotesenko, 2015).
Corporate social responsibility programs should be guided by the sober interpretation of the interests that shareholder activists seek to meet through their campaigns. For example, it is important for investors to have a good comprehension of the fickle nature of activists, with regard to their unique investment horizon compared to the ordinary shareholder. Their uniqueness is characterized by their willingness and financial capacity to accept losing a position within a corporation’s board as long as they realize no one is buying into their agenda (Gramm, 2016). This element often affects the ability of an organization to execute its corporate social responsibility agendas because the support of shareholders is often shaky.
Responsible Investment
According to research, many corporations in the contemporary world have purposed to reorient their investment policies in line with the principle of the common good through responsible investment strategies (Richardson, 2013). As a way of addressing the numerous challenges associated with globalization, responsible investment is one of the notable trends that corporations have taken up since the turn of the century. It refers to an investment approach that aims to integrate social, environmental, and governance elements into investment decisions with the sole purpose of improving risk management, as well as generating sustainable and long-term results (Krosinsky, 2017).
The social elements integrated into investment decisions include improving employee relations, diversity, health, safety, working conditions, as well as conflict management. Environmental elements include deforestation, resource depletion, waste management, pollution, and climate change. Governance elements include issues relating to tax strategy, executive pay, political lobbying, corruption, as well as board diversity and structure (Richardson, 2013).
The concept of responsible investment has been necessitated by several factors that relate to sustainability. One of the driving factors is the realization that social, environmental, and governance factors play a pivotal role in determining the risks that an investment attracts, as well as the returns made (Sullivan & Mackenzie, 2017).
According to investment experts, corporations in the contemporary world have also felt the need to invest more responsibly as a way of managing the pressure of competitors who are differentiating themselves with a competitive advantage developed around responsible-oriented venture services. The culture of responsible investing has also been highly influenced by the growing pressure of shareholders who have chosen to take up a more active role in the running of corporations, as well as demanding transparency with regard to the way their money is being put into use (Sherwood & Pollard, 2018).
In the recent past, there have been numerous debates seeking to develop a clear understanding of the exact manner in which an investor should practice responsible investment. According to experts, investors have a wide variety of approaches to choose from if they want to incorporate the concept of responsible investing into the decision-making process (Sherwood & Pollard, 2018). It is important to note that the strategy chosen is often guided by the nature and intensity of corporate social responsibility programs a corporation has chosen to implement.
One of the most effective approaches is using the voting rights of shareholders to influence a corporation’s behavior (Richardson, 2013). Investors can also integrate information about the social, environmental, and governance elements into the quantitative and qualitative analysis of a corporation’s equity value and creditworthiness (Bohm & Skoglund, 2017). This is very important because it plays a crucial role in making informed decisions while making adjustments relating to the selection, weighting, and allocation of assets. In addition, experts argue that such kind of information forms the basis for developing corporate social responsibility initiatives (Richardson, 2013).
Advantages of Responsible Investing
Studies have shown that corporations that integrate the concept of responsible investing in their investment decisions reap several benefits with regard to the effectiveness of their corporate social responsibility programs (Purdom & Krosinsky, 2016). One of the major advantages of responsible investing is the economic efficiency of an organization. According to research, environmentally conscious and socially cohesive business practices by any corporation often pay off good returns in the long run in terms of achieving economic sustainability (Sherwood & Pollard, 2018).
This observable fact is influenced by the increasing demand for products that are compatible with the social norms and environmental regulations across the world. Experts argue that political regulation has played a major role in ensuring organizations conform to the set guidelines through government measures such as emission limit controls that have encouraged more corporations to consider integrating the concept of responsible investment. It is important to note that economic efficiency in a corporation cannot be achieved without taking the personal values of investors into consideration (Richardson, 2013).
For example, the biggest motivation of all investors has a promising future. Thus they are always willing to make the necessary contributions towards achieving an environmentally conscious and socially sustainable investment culture. This forms a good foundation for an informed and inclusive decision-making process because the needs and interests of all stakeholders will be taken into consideration. In turn, this enhances the effectiveness of the corporate social responsibility initiatives because the goodwill from investors is assured since their money will be put into good use (Sherwood & Pollard, 2018).
Another advantage of responsible investment is the fact that it develops investments with competitive returns and limited risks. According to investment experts, the economic relationship between investment and sustainability often leads to positive results within a corporation with regard to the efficiency of the service delivery systems, the effectiveness of the decision-making process, and the satisfaction of investors (Bohm & Skoglund, 2017).
For example, investors have a higher chance of approving corporate social responsibility programs proposed by a corporation’s management team provided that the existing investments have proven to be competitive enough and with minimal or no risks involved. One of the greatest fear among investors is putting their money in high-risk investments or in areas that are politically sensitive (Richardson, 2013).
This often creates fear because there is a high chance that they might make huge losses that will take a long time to recover. Therefore, for a corporation to succeed in its corporate social responsibility initiatives, it is necessary to ensure that the support of all investors is earned before decision-making (Richardson, 2013). In addition, the informed input of investors with regard to the corporate social responsibility agendas is very crucial to the competitiveness of investments because the reception that people give to a corporation’s activities within a community depends on the impact it is having on their quality of life (Hebb, Hawley, Hoepner, & Wood, 2015).
Disadvantages of Responsible Investment
Investment experts argue that responsible investment has a number of reservations despite the immense value it adds to an organization. According to research, the drawbacks associated with the responsible investment are highly inclined towards the ability and willingness of an organization to commit enough resources into the process of integrating the social, environmental, and governance elements in investment decisions (Richardson, 2013).
One of the main disadvantages of responsible investment is that it requires a lot of time and extensive research. Studies have shown that the amount of time required in studying the potential of an investment is often a put-off to investors who have a wide portfolio because of all the necessary benchmarks (Richardson, 2013). Unlike the traditional forms of investments that are passive in nature, ethical investment requires both qualitative and quantitative research with regard to the potential of investments to be competitive enough without attracting unmanageable risks (Bohm & Skoglund, 2017).
In addition, it is important for an investor to ensure that the proposed investment aligns with the organization’s corporate values. This is an important element in making decisions geared towards implementing the corporate social responsibility agendas. According to experts, the social responsibility agendas of an organization are a reflection of its corporate values, thus the reason why responsible investment requires adequate research into the potential of an investment (Bohm & Skoglund, 2017). For example, an organization that promotes the value of sustainable business practices should extend the same commitment to the decisions of its corporate social responsibility programs.
Another drawback associated with responsible investment is the fact that it is not often an optimal strategy considering the high costs involved. Studies have shown that there is no guarantee that ethical investing will give an organization optimal return even when assured financial gains are sacrificed (Bohm & Skoglund, 2017). This phenomenon is necessitated by the high costs incurred in the additional research required before committing to any investment. Experts argue that the need for an organization to put channel resources into an investment that matches its belief system is quite costly because it often eats into the portfolio’s profits (Bohm & Skoglund, 2017).
This challenge has proven to be a big influencing factor with regard to the decisions that some organizations make for their corporate social responsibility programs. For example, instead of embarking on an ethical investment approach that is costly, an organization can opt to apply the conventional strategies and commit a considerable fraction of its profits to increase the number of activities in its corporate social responsibility agendas. Such a decision is often influenced by the reservations of shareholders regarding the level of risks they are willing to take on investments (Richardson, 2013). Experts argue that conventional strategies of investing have lower risks, but their returns are not as augmented as those associated with responsible investing.
Conclusion
Corporations in the contemporary world should integrate the elements of responsibility and sustainability into their business practices. A corporation can benefit or suffer from the activities of shareholder activists based on the impending situation. Shareholder activists have the ability to influence the management team more than the average shareholder does. Organizational leaders should appreciate the fact that the changes shareholder activists attempt to influence often have huge potential in terms of increasing the value of shares. The economic value of an organization can be further heightened through responsible investing, which focuses on integrating social, environmental, and governance elements into investment decisions.
References
Behar, A. (2016). The shareholder action guide: Unleash your hidden powers to hold corporations. New York, NY: Berrett-Koehler Publishers.
Butu, M. (2013). Shareholder activism by hedge funds: Motivations and markets perceptions of hedge fund interventions. San Francisco, CA: Diplomica Verlag.
Carlisle, T.E. (2014). Deep value: Why activist investors and other contrarians battle for control of losing corporations. New York, NY: John Wiley & Sons.
Filatochev, I., & Dotesenko, O. (2015). Shareholder activism in the UK: Types of activists, forms of activism, and their impact on the target’s performance. Journal of Managerial Governance, 19(1), 5-24.
Gantchev, N. (2013). The cost of shareholder activism: Evidence from a sequential decision model. Journal of Financial Economics, 107(3), 610-631.
Goarnova, M., & Verstegan, R.L. (2014). Shareholder activism: A multidisciplinary review. Journal of Management, 40(5), 1230-1268.
Gong, B. (2013). Understanding institutional shareholder activism: A comparative study of the UK and China. New York, NY: Routledge.
Gordon, J.N., & Ringe, W. (2018). The oxford handbook of corporate law and governance. Oxford, UK: Oxford University Press.
Gramm, J. (2016). Dear chairman: Boardroom battles and the rise of shareholder activism. New York, NY: Harper Collins.
Grewal, J., Serafeim, G., & Yoon, A. (2016). Shareholder activism on sustainability issues. New York, NY: Routledge.
Hartmann, M.D. (2014). Shareholder activism: Benefits and drawbacks. New York, NY: PL Academic Research.
Hebb, T., Hawley, J.P., Hoepner, A.G.F., & Wood, D. (2015). The Routledge handbook of responsible investment. New York, NY: Routledge.
Krause, N. (2018). Shareholder activism: A practitioner’s handbook. Massachusetts, MA: De Gruyter.
Krosinsky, C. (2017). The short guide to sustainable investing (3rd ed.). New York, NY: Taylor & Francis.
Purdom, S., & Krosinsky, C. (2016). Sustainable investing: Revolutions in theory and practice. New York, NY: Taylor & Francis.
Reed, R., & Storrud-Barnes, S.F. (2015). Increased shareholder activism and the changing landscape of corporate governance. American Journal of Business, 30(1), 12-34.
Richardson, B.J. (2013). Fiduciary law and responsible investing: In nature’s trust. New York, NY: Routledge.
Sherwood, M.W., & Pollard, J. (2018). Responsible investing: An introduction to environmental, social, and governance investments. New York, NY: Taylor & Francis.
Sullivan, R., & Mackenzie, C. (2017). Responsible investment. New York, NY: Taylor & Francis.
Walker, O. (2016). Barbarians in the boardroom: Activist investors and the battle for control of the world’s most powerful companies. London, UK: Pearson UK.
To function in the modern global environment, companies need to foster compliance with their employees’ corporate values and standards. Notably, organizations need that their staff members follow the key ethical principles and quality standards during decision-making. Herein lies the importance of Corporate Social Responsibility (CSR). Shareholder Activism (SA) and Responsible Investment (RI) can be seen as critical tools for promoting CSR in the context of an organization in regard to the financial processes within it. Using SA and RI to encourage CSR is the topic of this essay, which will analyze each phenomenon separately and then draw conclusions.
The phenomenon of SA is quite multifaceted; it can take many forms and manifest itself in a number of ways. Applying a rather loose definition of the subject matter to the analysis, one may assert that SA is a “tactic designed to protect shareholders from managers’ self-interest” (Perrault, 2015, p. 159). SA is expected to protect the rights of shareholders and ensure that their needs are addressed. Therefore, with the application of SA, one can shape corporate behaviors and choices in order to champion the needs and rights of shareholders in regard to a particular business.
Approaching the concept of SA from a more specific standpoint, one may claim that it is a corrective measure for addressing the inconsistencies in the allocation of financial resources within a corporation (Uldam & Hansen, 2017). Therefore, the phenomenon of SA can be defined as the propensity among shareholders to seize control over the key financial processes within an organization or, to the very least, establish rigid control over the transactions performed in its setting.
In addition, SA can be interpreted as the range of activities that shareholders can perform in the context of a publically traded company concerning the financial decision, organizational structure, and overall management (Goranova & Ryan, 2014). However, SA occurs rather rarely in a financial environment since it is fraught with numerous expenses and, therefore, may hamper the progress of an organization.
As a rule, several types of SA are identified in the context of the modern global economy. Traditionally, two types are used most frequently; these include proxy contests and shareholder proposals (Cohn, Gillan, & Hartzell, 2016). It should be borne in mind that the range of SA types is not restricted to the specified two phenomena; there is the SA category that requires the barest minimum of participation from shareholders and is known as “say on pay” (Perrault, 2015, p. 161).
On the other side of the spectrum, there is the hedge fund activism mentioned above, which can alter the very fabric of an organization, and which allows a shareholder to alter a strategy used by a company to allocate its resources. The “Vote No Campaign” is a slightly milder approach toward SA, which suggests that shareholders are urged to withhold their votes from director candidates (Croft & Malhotra, 2017). The shareholder proposal, in turn, implies submitting a document in which a shareholder details their suggestions concerning a change in a company’s investment-related choices.
While the phenomenon of SA is typically associated with numerous expenses, it would be incorrect to label it as purely negative. There are several benefits to the incorporation of SA-based principles into an organization. For example, with the introduction of SA into a corporate environment, the incidences involving poor governance are addressed appropriately (Langenbucher, 2017). Therefore, the overall level of company management is improved significantly, with key processes becoming more organized and managers’ actions being aligned with a firm’s priorities (Laskin, 2017).
The specified change has a direct effect on the levels of CSR within an organization since the objectives of an organization are redefined, and the premises for creating a new corporate value are built. As a result, employees are encouraged to develop a stronger sense of CSR so that the key corporate decisions could encourage consistent economic growth.
In addition, the introduction of SA into the context of a business environment is typically associated with the concept of socially responsible investment (SRI). Being the direct successor of the CSR phenomenon, SRI implies that the choices made in the context of a particular organization in regard to investing resources are aligned with the principles of sustainable use of resources. Particularly, the propensity toward a green economy can be identified in the SRI initiatives that can be launched once shareholders receive the opportunity to define the policies and decisions of an organization. Because of the focus on maximizing the social good, SRI should be seen as a critical impetus for the promotion of CSR as the basis for the corporate philosophy (Ransome & Sampford, 2016).
Herein lies the importance of SA-related initiatives in the organizational setting. By focusing on the issues associated with the ethical functioning of an organization and the social aspects of its decisions, shareholders are capable of altering the course of a firm’s development and integrating the principles of sustainability in it. The identified positive change is bound to have long-term effects since it will lead to a twofold outcome (Crifo & Mottis, 2016).
First and foremost, the opportunities for reducing waste and allocating corporate resources and assets, at the same time minimizing the expenses, will become possible for an organization. Furthermore, with the redesign of corporate values and the adoption of a more ethically appropriate standpoint, a company is likely to win the affection and support of a significant number of stakeholders, including potential buyers, partners, and investors. Thus, a firm that will implement the principles of SA in its design is likely to be represented in the target market much better than its competitors are.
Furthermore, the introduction of SA into the context of an organization allows securing the needs of shareholders and prevent managers from abusing their powers in the context of an organization. The specified outcome aligns fully with the idea of SCR since it entitles shareholders to a certain amount of influence over corporate processes and particularly decision-making. As a result, shareholders are provided with certain power in regard to the choices made to maintain the company consistently popular and successful in the selected market (Kreibohm, 2016).
As a result, shareholders are offered crucial information about the organization’s performance, influence, and the type of presence that it has established in the chosen area so far. As a result, shareholders are capable of making financial decisions that will affect a company positively and encourage it to grow.
Unfortunately, the implementation of SA in the realm of a specific business is not devoid of disadvantages, either, the problem of time horizons being the key one. Specifically, it is important to keep in mind that different types of investors have different time horizons, which makes them frame their goals, strategies, and actions, respectively. The discord in the time frame of the planning process and the following conflicts in the designated area make it very difficult to plan the company’s actions and create long-term strategies.
Although the phenomenon of the inconsistency between the time frames of different stakeholders could be seen as a challenge to a company’s flexibility, it still causes more harm than good by introducing discrepancies into an organization’s strategies in the global market. Particularly, because of the shift toward the short-term perspective, a firm’s long-term goals may suffer significantly, with the ensuing drop in-market representation, market shares, and profit margins (Hebb, Hawley, Hoepner, Neher, & Wood, 2015).
Thus, the adoption of the DSA framework requires the reconsideration of the approach toward managing long-and short-term goals, as well as the ability to balance between the needs and interests of different types of shareholders, which is often a great challenge for an average firm.
The disadvantage mentioned above is particularly detrimental to the promotion of SCR since it implies that a company will put some of its investors at a significant disadvantage. Due to the differences in priorities of shareholders, locating the solution that will become the middle ground and satisfy the needs of all parties involved will become particularly difficult once SA is introduced. Therefore, an organization will not be capable of creating the setting in which all participants will cooperate to achieve a common goal; instead, each stakeholder will strive to meet their own needs, with the long-term goals of a company being abandoned.
While the described scenario represents the extreme situation in which the problem of managing people’s interests has grown out of its proportions, it nevertheless is a plausible situation (Ransome & Sampford, 2016). Therefore, SA may have vastly negative consequences on both CSR and investment options.
Nonetheless, it would be erroneous to dismiss SA as an entirely negative phenomenon. Although it may have negative effects on CSR and the overall management of corporate resources, it also provides an opportunity to introduce a stronger corporate philosophy, thus reinforcing the relevant values and enhancing key processes. However, due to the threats of failing to maintain flexibility within an organization and, thus, succumbing to a very rigid set of standards for organizational behaviour, decision-making, and especially investment options, there is a need to control SA as a phenomenon. Thus, a well-balanced solution can be introduced into the corporate setting, allowing one to keep the corporate integrity and ensure that the needs of all stakeholders are addressed respectively.
Investing safely is one of the crucial goals that an organization can pursue in the global market. Because of the risks associated with investments, it is critical to building a sustainable approach toward investing. The problem of investment choices is also linked directly to the phenomenon of CSR since they define the process of value creation and, thus, indicate whether an organization is compliant with the existing ethical and environmental standards as it pertains to the organization’s investments (Louche & Lydenberg, 2017). Herein lies the importance of Responsible Investment (RI) as the tool for keeping a company’s financial decisions aligned with the existing standards.
By definition, RI is a strategy for investing a company’s financial assets in a way that allows it to build its financial value, at the same time maintaining its sustainability levels high (Lean, Ang, & Smyth, 2015). The connection between CSR and RI is evident since RI is often termed as a socially responsible investment (SRI), which indicates that its nature is linked directly to CSR principles (Nakano & Tsuge, 2018).
The phenomenon of RI can be used to help an organization benefit significantly as a CSR-oriented entity. Specifically, the application of RI affects the choices associated with sustainability directly. However, at this point, one should note that the concept of RI might take a range of shapes depending on the goals that the specified process pursues and the setting in which a firm operates.
For example, RI may be linked directly to the idea of sustainability and environmentalism as the constituents of SCR, which will require that a company adopt an environmentally safe investment technique. Particularly, investing in green technology and similar projects should be seen as the critical aspect of the proposed policy in regard to environmental RI.
Alternatively, RI may imply following ethical practices based on the concept of safety in investment. Either way, the focus on ethically sensible decisions made in the environment of a specific company is typically regarded as the propensity toward building an EI-based strategy. As a result, RI is likely to have a profoundly positive impact on the levels of performance of an organization. Apart from creating chances for safe investments, the RI framework will help improve the current reputation of a firm and introduces opportunities for reinforcing the system of corporate values (Bilbao-Terol, Arenas-Parra, Cañal-Fernández, & Bilbao-Terol, 2016). Thus, RI should be seen as a critical component of the CSR framework and an important constituent of managing an organization from an ethical standpoint.
In addition, one should give RI credit for setting the platform for a significant change in the overall framework of decision-making in a global company. The specified step is very difficult to accomplish due to a vast range of factors that one has to embrace when dealing with a change at every level of a company’s functioning. The application fi RI, in turn, will affect every facet of a firm’s functioning, leading to a huge shift in priorities and a massive alteration in the company’s decision-making principles (Trinks & Scholtens, 2017). RI introduces the tools for making a shift in the corporate policies, organizational framework, and financial operations, giving all parties involved an option to adjust to the changes and accept them.
While the adoption of RI techniques may seem like an entirely flawless plan for integrating the [principles of SCR into the corporate environment, the specified decision will ensure both benefits and problems. Due to the explicit focus on following a set of ethical guidelines and principles, the problematic sides of RI are more pronounced than their benefits. The first and most obvious issue is linked directly to the increased number of responsibilities and a change in the public image of an organization.
Specifically, the decisions made by a firm that has adopted RI will be scrutinized much more closely than the ones of other organizations, and the slightest deviations from the selected path will be judged very harshly by the public (Bilbao-Terol et al., 2016). While the described outcome cannot be deemed as exactly negative, it will put an organization under considerable strain, making it meet a range of rigid demands.
For instance, it is critical for a company that uses the RI principles based on environmentalism to invest in the firms that also follow impeccable environmental policies; any decision that implies the opposite will lead to an organization being criticized, with an immediate public scandal and the inevitable PR crisis. The propensity to view the choices made by companies solely from a two-dimensional perspective, as well as the public disdain and the impossibility of a resurgence for a company whose reputation has been stained, are evident disadvantages (Auer, 2016). Since the specified perspective implies that a single step in the wrong direction will imply an immediate and unavoidable demise for a company raises financial risks for a firm far too high to be seen as a positive or even a neutral factor.
Surprisingly enough, the disadvantage mentioned above can also be seen as an advantage that an organisation can use when applying IR techniques. Specifically, it should be mentioned that the described problems of PI also contributes to the promotion of ethical standards within an organisation. Indeed, the inability to avoid repercussions for ethically wrong actions is not a negative factor for a company that does not intend to engage in corporate fraud (Sullivan & Mackenzie, 2017).
Therefore, the focus on IR will help an organisation to follow the established ethical guidelines closely and, thus avoid the instances of corporate fraud. Furthermore, a company can monitor the adherence to corporate ethical standards and values more closely once the IR principles are integrated into its framework (Riedl & Smeets, 2017). The promotion of responsibility will create additional opportunities for fostering clarity across all organisational, financial, managerial, promotional, and other types of processes that will occur in the corporate setting. Therefore, the transparency of the firm’s activities will make it more credible in the public eye. As a result, the firm will be capable of attracting new customers and investors, as well as enhancing loyalty among its current ones.
At the same time, a company that adopts IR will also have to face the problem of following objective criteria for its actions. The specified issue is rooted in the deeply subjective nature of responsible choices, in general. While there are general principles such as the need to abstain from investment fraud, the concept of responsibility, ethics, and appropriate investment choices remains a very subjective idea.
The specified statement means that an organisation will never satisfy every single stakeholder and member of the general audience (Chen, Chen, & Chi, 2018). Consequently, what some critics may deem as legitimate and ethically appropriate, others may dismiss as ethically flawed, at best. The specified problem of IR is, perhaps, the greatest one for an organisation to handle in the realm of the global market. Because of the need to appease a very diverse audience, a global firm will need to be especially cautious in its investment decisions. Consequently, a range of potentially profitable opportunities will have to be discarded in case even the slightest moral ambiguity can be identified.
The problem is aggravated by the fact that, in the global market, what seems as an ethically feasible choice by one culture will be branded as immoral by another. Thus, a profound cultural research will have to be made prior to making any corporate decisions, which will hamper all processes within a firm.
However, there is also the undoubtable advantage of using RI is the rise in SCR within the corporate setting. By encouraging ethically responsible investing in the corporate setting, leaders will foster the idea of moral responsibility among staff members, thus redesigning the corporate environment toward a more wholesome and healthy one. Consequently, it is critical for companies to adopt RI and CSR as the foundational principles for governing their organisations. The specified notions allow building the organisational environment in which any dishonest practice becomes impossible (Louche & Lydenberg, 2017).
The identified opportunity is essential for a firm that operates in a global economic setting; Due to the numerous options for staff members to engage in corporate fraud and the lack of control that leaders can exert in a global firm, it is essential to focus on building an ethically rigid setting. Thus, one can avoid a range of issues associated with the management of a company in the environment of a global market.
Therefore, RI should be considered as an important chance for an organisation to advance in the selected area by building the reputation of an ethically responsible company. Although RI concerns primarily financial operations directly, it provides the foundation of building a new system of values based on which decisions are made in the corporate environment (Lean et al., 2015). Moreover, the specified approach will encourage staff members to follow the principles of corporate ethics and the principles of CSR.
Promoting change in the corporate setting is a challenging task, especially when it comes to advocating ethical principles and encouraging staff members to accept rigid guidelines for decision-making. However, the specified measures are not only necessary but also inevitable in the global setting, where the threat of external factors affecting an organisation increases exponentially. Therefore, one should consider integrating the principles of SA and RI as the elements of SCR into the framework of a firm. While the specified changes may entail certain difficulties, they will set the course for a more ethical approach toward making decisions and solving issues related to finances and resource management. Thus, a firm can maintain flawless reputation in the global economy, meeting the needs of its stakeholders.
References
Auer, B. R. (2016). Do socially responsible investment policies add or destroy European stock portfolio value? Journal of Business Ethics, 135(2), 381-397.
Bilbao-Terol, A., Arenas-Parra, M., Cañal-Fernández, V., & Bilbao-Terol, C. (2016). Multi-criteria decision making for choosing socially responsible investment within a behavioral portfolio theory framework: A new way of investing into a crisis environment. Annals of Operations Research, 247(2), 549-580.
Chen, M. H., Chen, B. H., & Chi, C. G. Q. (2018). Socially responsible investment by generation Z: a cross-cultural study of Taiwanese and American investors. Journal of Hospitality Marketing & Management, 1(1), 1-17. Web.
Cohn, J. B., Gillan, S. L., & Hartzell, J. C. (2016). On enhancing shareholder control: A (Dodd‐) Frank assessment of proxy access. The Journal of Finance, 71(4), 1623-1668.
Crifo, P., & Mottis, N. (2016). Socially responsible investment in France. Business & Society, 55(4), 576-593. Web.
Croft, T., & Malhotra, A. (2017). The responsible investor handbook: Mobilizing workers’ capital for a sustainable world. New York, NY: Routledge.
Goranova, M., & Ryan, L. V. (2014). Shareholder activism: A multidisciplinary review. Journal of Management, 40(5), 1230-1268. Web.
Hebb, T., J. P., Hawley, Hoepner, A. G. F., Neher, A. L., & Wood, D. (2015). The Routledge handbook of responsible investment. New York, NY: Routledge.
Kreibohm, E. M. (2016). The performance of socially responsible investment funds in Europe: An empirical analysis. New York, NY: Books on Demand.
Langenbucher, K. (2017). Economic transplants: On lawmaking for corporations and capital markets. Cambridge, UK: Cambridge University Press.
Laskin, A. V. (Ed.). (2017). The handbook of financial communication and investor relations. New York, NY: John Wiley & Sons.
Lean, H. H., Ang, W. R., & Smyth, R. (2015). Performance and performance persistence of socially responsible investment funds in Europe and North America. The North American Journal of Economics and Finance, 34, 254-266.
Louche, C., & Lydenberg, S. (2017). Dilemmas in responsible investment. New York, NY: Routledge.
Nakano, M., & Tsuge, T. (2018). Are people interested in corporate social responsibility? Exploring the possibility of socially responsible investment in Japan. Konan Economic Papers, 58(3/4), 21-45.
Perrault, E. (2015). Why does board gender diversity matter and how do we get there? The role of shareholder activism in deinstitutionalizing old boys’ networks. Journal of Business Ethics, 128(1), 149-165. Web.
Ransome, W., & Sampford, C. (2016). Ethics and socially responsible investment: A philosophical approach. New York, NY: Routledge.
Riedl, A., & Smeets, P. (2017). Why do investors hold socially responsible mutual funds? The Journal of Finance, 72(6), 2505-2550.
Sullivan, R., & Mackenzie, C. (Eds.). (2017). Responsible investment. New York, NY: Routledge.
Trinks, P. J., & Scholtens, B. (2017). The opportunity cost of negative screening in socially responsible investing. Journal of Business Ethics, 140(2), 193-208. Web.
Uldam, J., & Hansen, H. K. (2017). Corporate responses to stakeholder activism: partnerships and surveillance. Critical Perspectives on International Business, 13(2), 151-165. Web.
