What is meant by "shareholder activism"?

Shareholder activism refers to the efforts made by shareholders to influence a corporation's behavior, management decisions, and policies. It typically involves activities designed to bring attention to issues such as company strategy, governance, social responsibility, environmental practices, and financial performance. Activist shareholders often do this through various methods, including filing resolutions, engaging in dialogue with management, campaigning for changes on the board of directors, or mobilizing other shareholders to vote for particular initiatives.

In this context, option B accurately captures the essence of shareholder activism, highlighting the proactive role that shareholders can play in shaping how a company operates, advocating for changes that they believe will enhance the value of their investments or promote certain ethical or social goals. This activism can lead to significant shifts in corporate strategy or policy as companies respond to the influences and demands of their shareholders.