When shareholder activists attack a company, its rivals may feel the heat too and change their ways

Sometimes corporations yield when facing pressure from their shareholders – even when it's indirect. alexsl/iStock via Getty Images Plus

Shareholder activists are investors who leverage their ownership in a company to push for change.

When those activists target a company, they usually want managers to change strategy, cut costs, improve performance or address issues such as climate change and worker rights. If managers resist, activists may seek board seats, call for leadership changes or criticize the company.