What impact does shareholder activism often aim to achieve?

Shareholder activism primarily seeks to influence company policies and decisions. Activist shareholders use their stakes in the company to push for changes that they believe will enhance shareholder value or improve the company's performance. This can involve advocating for changes in management, strategic direction, or specific policies related to corporate governance, sustainability, and other key operational areas.

By concentrating on influencing decisions and policies, activists aim to align the company's actions with the interests of shareholders. While increasing profits and reducing costs might be potential outcomes of successful activism, the core objective is the direct influence on decision-making processes within the company. Thus, the emphasis on affecting policies and decisions is what distinctly characterizes the goals of shareholder activism.