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What influence do shareholders have on sustainability efforts?

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It is important that the investors believe in the company and its management. Shareholders react to gossip, news and rumors. If they feel that a company is being mismanaged or trying a new strategy far outside the element of the company’s core business shareholders will run fast. This means selling the company’s stock.

Investors themselves may be interested in companies that work towards sustainability. Any effort to work towards sustainability can be seen very positively to potential investors. It may draw in more investments increasing the share price.

Even though the stock price is not really the best indicator of the company’s value especially in the short term the company must monitor the stock price with any news released that may appear negative.

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