Shareholders in a Disrupted World: What Role Should They Play?

As the global business landscape faces increasing disruption—from geopolitical volatility and technological acceleration to the pressing demands of climate change—company boards are under mounting pressure to navigate uncharted waters. In this context, the role of shareholders is evolving rapidly, and with it, their responsibilities in ensuring effective corporate governance.

At a conference hosted by IESE Business School’s Center for Corporate Governance (CCG) in partnership with the European Corporate Governance Institute, academics and executives came together to explore how shareholders can support companies in times of profound disruption.

Prof. Jordi Canals, the CCG president, and Marco Becht, executive director of ECGI and a professor at Université libre de Bruxelles, chaired the event entitled Shareholders’ Role in Times of Corporate Disruptions. Other speakers included Prof. Jill E. Fisch of the University of Pennsylvania, Colin Mayer, an emeritus professor at Oxford University’s Saïd Business School, and Prof. Amir Licht of Reichman University.

Here are some of the key themes and takeaways from the event held at IESE’s Madrid campus on March 31:

Rethinking Shareholder Influence

Discussions focused on how different types of shareholders—from institutional investors to activist funds—can shape corporate governance and strategy in distinct ways. Key areas of exploration included:

• Governance Effectiveness: How different kinds of shareholder contribute to board decision-making and effectiveness.
• Shareholders’ Role: The role played by different types of investor in navigating sustainability, technology shifts, and political polarization.
• Long-Term Thinking: How shareholders influence (or challenge) long-term value creation versus short-term financial returns.
• Evolving Expectations: The growing demand among investors for companies to balance financial performance with social impact.
• Board-Shareholder Engagement: Why building constructive relationships with shareholders matters more than ever.

Insights for Boards & Investors

Here are four takeaways for both board members and shareholders navigating this complex terrain:

1. Clarity Is Powe: A well-defined corporate mission and values act as a compass during turbulent times. When geopolitical or technological upheaval strikes, companies with a strong sense of purpose are better positioned to stay on course.

2. Agility Is Survival: Even with clear values, companies must remain agile. The ability to pivot in response to external shocks—not just defend against them—can also uncover new opportunities.

3. Preparation Is Everything: Boards must invest in scenario planning. “What if” thinking isn’t just useful—it’s essential. Testing systems and preparing for various futures builds organizational resilience.

4. Play the Long Game: Strategy should outlast cycles of news and politics. Directors should resist short-term pressures and engage with policymakers to shape, rather than just react to, regulatory landscapes.

The Bottom Line

In a time of complexity and uncertainty, shareholders are not just financial backers—they are co-pilots in a company’s strategic journey. By engaging meaningfully and pushing for strategic, values-driven governance, they can help companies not just survive but thrive.