Rethinking 'Political' Considerations in Investment
27 Pages Posted: 20 Jan 2021
Date Written: Sepember 12, 2016
This is a transcript of my remarks as 2016 Visiting Scholar in Corporate and Business Law at Delaware Law Widener University, delivered to the members of the Delaware Judiciary and Bar at the Wilmington Club on September 12, 2016. I introduce the idea of multipreference shareholders whose interests may at times depart from maximizing returns, and I address the question more generally on taking so-called "political" considerations into account when making investment decisions. I argue that political pressures are increasing in the investment world "everywhere at the same time."
Keywords: shareholders, ESG, investment, fiduciary duty, multipreference shareholders, governance, corporate governance, portfolio, social responsibility, sovereign wealth funds, pension funds, union funds
JEL Classification: G11, G30, G32, K22
Suggested Citation: Suggested Citation