In the 21st century, it has become increasingly popular for shareholders to press their corporate demands through the use of shareholder proposals. Many of these proposals are filed by large institutional shareholders. Nevertheless, corporate boards continue to resist such proposals. Is it ethical for corporate directors to resist the will of the shareholders in this way? Explain your position by referring to the section on corporate social responsibility in Chapter 1.

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Table 27-2 Strengthening Shareholders >> Reelect all directors each year rather than hold staggered elections: >> Let shareholders approve golden para- chutes if they exceed three times pay: 2006 52% 2007 66% >> Allow investors to >> Link executive cast a nonbinding pay to performance vote on executive of the company: pay: >> End supermajority votes, the rule that up to 80% of owners back some proposals: 2006 63% 2006 66% 2006 40% 2006 30% 2007 73% 2007 72% 2007 43% 2007 35% Data: Institutional Shareholder Services. 2007 averages are based on preliminary vote counts and are not final.