Publications
Publications
- October 2021
- HBS Case Collection
Engine No. 1: An Activist Hedge Fund Pursues Stakeholder Capitalism (B)
By: Mark Kramer
Abstract
Engine Number 1's proxy fight succeeded in part because Exxon shareholders had lost money in the preceding years and because climate change was a high-profile issue. The B case raises the question of whether Engine No. 1's next target should be Facebook, where social issues are more complicated and shareholders, at the time, had excellent returns. Did the activist hedge fund's claim of delivering positive social impact only work when shareholders have suffered economic losses? Was the fund's profit objectives really consistent with its social impact goals?
Keywords
Proxy Fight; Hedge Fund Activism; Social Impact; Business and Shareholder Relations; Climate Change; Corporate Social Responsibility and Impact; Goals and Objectives
Citation
Kramer, Mark. "Engine No. 1: An Activist Hedge Fund Pursues Stakeholder Capitalism (B)." Harvard Business School Supplement 222-038, October 2021.