Shareholder activism and corporate behaviour in Ecuador: a comparative study of two oil ventures

McAteer, Emily, Cerretti, Jamie and Ali, Saleem H. (2008). Shareholder activism and corporate behaviour in Ecuador: a comparative study of two oil ventures. In Ciaran Faircheallaigh and Saleem Ali (Ed.), Earth matters: indigenous peoples, the extractive industries and corporate social responsibility (pp. 180-197) Sheffield, United Kingdom: Greenleaf Publishing.

Author McAteer, Emily
Cerretti, Jamie
Ali, Saleem H.
Title of chapter Shareholder activism and corporate behaviour in Ecuador: a comparative study of two oil ventures
Title of book Earth matters: indigenous peoples, the extractive industries and corporate social responsibility
Place of Publication Sheffield, United Kingdom
Publisher Greenleaf Publishing
Publication Year 2008
Sub-type Research book chapter (original research)
ISBN 9781906093167; 906093164
Editor Ciaran Faircheallaigh
Saleem Ali
Chapter number 10
Start page 180
End page 197
Total pages 18
Total chapters 13
Language eng
Abstract/Summary The extraction of minerals is increasingly being undertaken by multinational corporations in remote areas that are often home to indigenous communities. Under growing regulatory pressures many of these companies have improved their social engagement practices. An additional point of leverage is now available to indigenous communities through shareholder activism to change the corporate behaviour of publicly traded companies. This chapter explores two cases of shareholder activism against oil companies in Ecuador using a ‘boomerang’ model of transnational advocacy networks, initially developed by Keck and Sikkink (1998). We adapt this model by focusing on shareholder activism in a case where there is a history of extraction versus a greenfield development. Our research suggests that, with the assistance of international civil society networks, considerable pressure can be exerted on publicly traded multinational companies. Differences in both the density/strength of the network and the vulnerabilities of targeted companies in terms of their size and resource base can influence the efficacy of such activism. In addition, the efficacy of shareholder activism can be hindered where past environmental harms are involved, or where culpability can be ascribed to past owners. Nevertheless, our research finds shareholder activism to be a promising avenue for indigenous communities for constructive confrontation that may make extractive projects more socially responsible and more acceptable to communities.
Q-Index Code BX
Q-Index Status Provisional Code
Institutional Status Unknown

Document type: Book Chapter
Collection: Centre for Social Responsibility in Mining Publications
 
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Created: Wed, 03 Oct 2012, 09:13:38 EST by Anthony Yeates on behalf of Centre for Social Responsibility in Mining