Describe the "proxy system" and how is it used to as activism to encourage companies to "go green."

Answer 1

In advance of each annual meeting, shareholders are sent form ballots listing the items that are up for vote, including membership on the board of directors, choice of an outside auditor, and resolutions brought by the board or shareholders. Each share of stock generally counts as one vote. Shareholders have the right to come to the annual meetings in person to cast their ballots, but few do. If they prefer, shareholders can vote by returning the "proxy card" that is mailed along with the notice of the meeting. The board of directors has the right to vote the shares of those who neither appear nor return a completed proxy vote. Given the large number of individuals who own stock in the typical publicly owned corporation, few of whom have a big block of shares, this system assures corporate control of the majority of the votes. In this way, shareholders have a voice in how "green" a company should be.