Shareholder Welfare Maximisation: Institutional Investors in UK Corporate Governance

Despite growing evidence in recent years that institutional investorsInstitutional investors (Dawn Zaiter) are becoming more active, not just in relation to corporate governance, but also in relation to the environmental and social impact of the companies they interact with, an investor-led approach that focuses on the willingness of institutional investorsInstitutional investors (Dawn Zaiter) to effectively steer companies towards sustainabilitySustainability (Moran Ofir/Tal Elmakiess) (Dawn Zaiter) (Phemelo Magau) (Rolf H. Weber) remains controversial. This chapter assesses the UK StewardshipStewardship (Dawn Zaiter) Code and the fiduciary dutiesFiduciary duties (Rolf H. Weber) (Dawn Zaiter) (Ann-Sophie Vandenberghe) imposed on investment intermediaries to determine their effectiveness in facilitating institutional investors’ integration of client and beneficiary preferencesPreferences (Dawn Zaiter). This assessment is particularly significant in light of the emerging Shareholder Welfare Maximisation Theory, which underscores the importance of addressing corporate externalitiesCorporate externalities (Dawn Zaiter) and aligning investor preferencesPreferences (Dawn Zaiter) with sustainabilitySustainability (Moran Ofir/Tal Elmakiess) (Dawn Zaiter) (Phemelo Magau) (Rolf H. Weber) objectives.