Creating guardrails to protect our common interest
the shareholder commons is tackling capital system failures that are endangering our future
Free market capitalism has made us healthier and wealthier for more than two centuries. But there is growing recognition of the costs we are paying for short-sighted business decisions that prioritize profits over our natural environment and human needs.
CAPITALISM IN CRISIS
INVESTORS ARE TAKING ACTION TO ADDRESS SYSTEMIC THREATS TO THEIR PORTFOLIOS
Investors are increasingly aware that they must use stewardship opportunities to protect their diversified portfolios from systemic risks. All portfolios depend upon a healthy society and environment, meaning that these risks cannot be avoided through security selection or mitigated by diversification. As a result, investors cannot optimize their financial returns unless they act to preserve and enhance systemic value.
WE CAN DO BETTER
Preserving Human Dignity and the Earth’s Abundance
The Shareholder Commons seeks to redesign the creative engine of market capitalism to respect the dignity of all human beings and preserve the earth’s bounty. We believe capital markets should distinguish between profits earned through authentic value creation and profits that come from unsustainable and inhumane practices.
AN INNOVATIVE APPROACH
INVESTOR ACTION
Preservation of our common resources requires investor voice, not unilateral disarmament by individual businesses. Current market structures limit the ability of an individual company to focus on systemic issues if doing so would compromise its future cash flows. Without strong investor voices pushing back on these pressures, businesses will continue to exploit common environmental and social resources.
COLLECTIVE ACTION
Preservation of our common resources requires collective investor action, not unilateral disarmament by the individual businesses. Current market forces do not permit individual companies to focus on systemic issues when it harms them financially. Without some means to overcome these pressures, too many businesses will continue to exploit common environmental and social resources.
the power of universal owners
By harnessing the power of universal owners—large institutional investors with diversified portfolios that have a financial interest in the well-being of the economy as a whole—we are working to ensure our capital markets give priority to long term systemic health over individual company profits.
the power of universal owners
By harnessing the power of universal owners — large institutional investors with diversified portfolios that have a financial interest in the wellbeing of the economy as a whole — we are working to ensure our capital markets give priority to long term systemic health before individual company profits.
sustainable standards
To allow profit-seeking to serve its vital role in pricing goods and services, diversified investors should use their voices to promote minimum standards for sustainable business practices that will encourage competition through efficiency and innovation.
sustainable standards
To allow profit-seeking to serve its vital role in pricing goods and services, diversified investors should use their voices to establish minimum standards for sustainable business practices that will encourage competition through efficiency and innovation.
OUR PLAN FOR CHANGE
public advocacy and field building
The Shareholder Commons advocates for an economic system in which companies and investors are expected to forgo profits that would come from depleting the common resources upon which all companies rely, and instead to focus on profits from authentic value creation.
engaging investors
The Shareholders Commons seeks to catalyze an investor movement to promote sustainable corporate conduct that protects common resources and diversified portfolios.
policy
The Shareholder Commons develops and advocates for public policies that accommodate diversified investors’ needs.
Litigation
Speaking on behalf of the universal owner in the courts, The Shareholder Commons uses litigation to further systems change and to stop rewards to irresponsible companies in the form of high margins and cheap capital.
Building a New Culture
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A Year of Systems-First Progress
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Portfolios Over Companies: When to Say No to Alpha
Recently, TSC’s CEO Rick Alexander had the opportunity to speak at the Intentional Endowments Network's 2025 Annual Forum. His remarks are reprinted here: Good morning. Thanks for that nice introduction and to everyone at IEN for putting this forum together. Instead...
System Stewardship Listening Tour – What We Learned from the First Roundtable
In September, The Shareholder Commons announced plans to embark on a new collaborative project to produce a system stewardship framework. With a thriving ecosystem of investors and other organizations taking action on system stewardship and growing interest from...
Together, we're embarking on a fundamental transformation of our financial system...
