Corporate Governance Issues Assignment

For this assignment, you are required to assess corporate governance issues at a real-world company and the measures available to resolve them. Understanding the specifics of a company’s corporate governance issues and the strategies available for resolving them is essential for executives, as it helps them ensure that they are adding more value for their own company’s stakeholders.

You are required to research and assess two companies, focusing on shareholder activism: BlackRock, an American global investment management corporation based in New York, and The Vanguard Group, an American investment management company. Before you engage with this assignment’s questions, read Eric Rosenbaum’s article for CNBC on the companies’ activism approaches, in particular when both voted for Exxon Mobil to produce a climate change report.

Then, refer to each company’s website. Does the company have an activism statement or policy? Are there examples of when the company exercised activism or news articles that refer to these activities? Is there evidence of scepticism as to the value of activist investors?

Answer the following questions in relation to the role of activism and common ownership in the governance of these two companies.

• Have BlackRock and Vanguard exercised activism as investors before and was it through voice or exit? Provide one example for each company.

(Max. 200 words)

• What are BlackRock and Vanguard’s objectives in taking shareholder action in relation to the companies they invest in? Explain your answer.

(Max. 100 words)

• How does BlackRock address claims of the negative outcomes associated with the common ownership it has in certain industries? Explain your answer.

(Max. 100 words)