According to Studzinski, in a 2014 Fortune magazine article, competing activist investor pressures push company management to decide between bottom line profits or social and environmental benefits. The company can only choose one or the other.

Question

Quizplus · Accepted Answer

These pressures also put managers in a difficult position as they potentially face competing pressures. One class of activist investors may be pushing the firm to take aggressive, profitability-oriented actions, while other activist investors may be pushing competing initiatives for the firm to take social or environmental actions. Activist investors are now pushing a broader range of issues with managers, most notably pushing social initiatives. The proposals have resulted in shareholders voting on issues related to greenhouse gas emissions, political spending, and labor rights. These initiatives rarely find strong support from shareholders, with environmental and social resolutions garnering only 21 percent support from shareholders when they get to an actual vote. About 30 percent of these proposals never get to a vote. Instead, corporate leaders and the activist investors negotiate an agreement on the issue.

According to Studzinski, in a 2014 Fortune Magazine Article, Competing