We propose that the trustees of institutional investors be required to consider certain economic, social, and environmental effects of their decisions on the interests of their beneficiaries with respect to stewardship of companies within their portfolios. This clarified understanding of fiduciary duty will ensure that institutional investors use t... See more

Executives must be aware that making investments that create value may be insufficient to  sustain the stock price if the market’s expectations are for either a larger amount of investment or a higher return on investment.