“Long-term shareholders need to be more represented than the Wall Street companies that are just concerned with quarter-to-quarter results,” Wilson said. “We want the entire company to be around in 100 years.”

And there’s evidence that the strategy can be effective.

Many companies targeted by activist investors have moved their practices in more sustainable directions, though few appear willing to acknowledge that shareholder pressure played a role. In just the past year, following related shareholder actions, McDonald’s has agreed to recycle all post-consumer packaging at its restaurants, Dunkin’ Donuts’ parent company has announced a plan to phase out the use of polystyrene cups, and Burger King, Starbucks, and KFC all agreed to reduce use of antibiotics in their poultry supply chain.

How Shareholder Activism Works

Organizations like As You Sow and ICCR bring together institutional and individual investors to amplify their influence. These groups research issues related to their missions and identify companies whose practices they believe need improvement. Members and partners of these organizations might buy shares specifically to get themselves a seat at the table when an issue is particularly important to them.

They then begin their campaigns by contacting companies, explaining their case, and attempting to convince the board and executives that change is in their best interest. ICCR is currently engaging with a number of large companies including Costco, Whole Foods, Denny’s Corp., Domino’s Pizza, and Yum! Brands (the parent company of KFC, Taco Bell, Pizza Hut, and other fast food restaurants) on antibiotics and food waste reduction.

If the companies are not responsive, many organizations will then submit a shareholder resolution, a proposal of no more than 500 words that suggests a course of action for a public company. The investor who makes the proposal files it with the Securities and Exchange Commission (SEC); the company then has the right to challenge the resolution. If the SEC allows the resolution, it becomes public and must be voted on at the company’s annual shareholder meeting.

Sometimes, simply filing these proposals is enough to make a company rethink its position. The company may offer a concession if the filing organization agrees to withdraw the resolution, thus avoiding the potential hit to their reputation should the issue make headlines.

“Companies do not like the fact that these proposals become public,” said Nadira Narine, who oversees food and water issues for ICCR. “It is our major leverage and negotiating tool with a company.”