The Supply Chain and Shareholder Rights

Aug. 27, 2010
When things go wrong with the supply chain, shareholders often shoulder and suffer a disproportionate portion of the pain. Further, the ability of shareholders to influence a company's supply chain has historically been almost nonexistent. It seems ...

When things go wrong with the supply chain, shareholders often shoulder and suffer a disproportionate portion of the pain. Further, the ability of shareholders to influence a company's supply chain has historically been almost nonexistent.

It seems things are about to change.

A new rule from the Securities and Exchange Commission (SEC) has opened the door for shareholders to play a far greater role in determining who serves on a corporate board.

SEC Chairwoman Mary Schapiro says the new rule will "enhance investor confidence in the integrity of our system of corporate governance."

Maybe. Time will tell.

But certainly, now, there is a strong possibility that investors, whether hedge funds, unions, employee-blocks, or others, may be able to meddle in the day-to-day affairs of a company.

For those managing supply chains, such a thought perhaps sends shivers down the spine.

Whatever the reaction, the notion that an investor, sometimes with unknown motives, might sway how a company's supply chain is organized OR reorganized is one to seriously consider.

This seems one of those moments when supply chain professionals need to communicate once again the strategic importance of their role within the organization.

Popular Sponsored Recommendations

How to Build Zero-Cost On-Site Solar and Storage Projects

Nov. 25, 2023
The Inflation Reduction Act offers tax credits, incentives, and financing that enable no-cost projects. In Enel’s eBook, discover the critical role that incentives play in your...

Reimagine Supplier Collaboration to Build the Supply Chain of Tomorrow

May 22, 2023
To realize success, organizations must create a supply chain management approach that can continuously absorb change—and turn it into a competitive advantage.

Discrete and Process Manufacturing 2024 Trends and Outlook for North America

Oct. 29, 2023
Manufacturers are reaping the benefits of automation and cloud-based solutions. Discover what is driving today's industry trends and how they can shape your growth priorities ...

Are You Positioned To Tackle Supply Chain Risk?

Sept. 20, 2023
Supply chain disruption is here to stay, but you can keep ahead of potential issues — and identify new opportunities — by regularly assessing your suppliers. Download our supplier...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!