Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 27.04.2022
Revision date: 17-May-2022
Length: 20 pages
Data source: Field research
Abstract
The case is about a sustainable investor firm based in California, Nia Impact Capital (Nia), and its founder and CEO, Kristin Hull. Hull's aim is to invest in gender and racial justice and to make money with meaning and purpose. She brings the logic of impact investing to public markets, exercising active ownership and engaging with portfolio companies, including Tesla, IBM and Apple. She crusades for social justice and against mandatory arbitration. For this reason, she filled shareholders' resolutions and has had proxy votes in the 2020 and 2021 proxy seasons. This case focuses on Nia's engagement with Tesla during the 2021 proxy season. Tesla is a leader across the renewable energy sector but has been in the headlines for sexual harassment and racial discrimination. In 2020, Nia submitted a shareholder resolution on Tesla's mandatory employee arbitration to the US Securities and Exchange Commission (SEC). In her speech to Tesla's shareholders in September 2020, Hull made her case against the company's forced arbitration for employee sexual harassment and racial discrimination claims. Tesla disputed the proposal and Nia lost the vote. Hull's actions as regards Tesla received extensive media coverage and highlighted her strategy as an activist investor. In her words, 'it was a win because it was an important move in a much larger and longer campaign'. As part of her battle, Hull decided to raise her voice and file again in October 2021. In her view, Nia's advocacy with respect to Tesla was advocacy for the entire country. Nia's resolution on Tesla's proxy ballot was crucial to her strategy for 'connecting the dots about forced arbitration'. At the end of the case, Hull must prepare a proposal to the SEC and a speech to Tesla's Board. She thought about the impact on Nia's future strategy if they didn't get 50% of the shareholders' vote during Tesla's board meeting on 7 October 2021.
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
United States
Featured company
Nia Impact Capital
Employees:
11-50
Turnover:
USD 450 million
Industry:
Finance
Featured protagonist
- (female)
About
Abstract
The case is about a sustainable investor firm based in California, Nia Impact Capital (Nia), and its founder and CEO, Kristin Hull. Hull's aim is to invest in gender and racial justice and to make money with meaning and purpose. She brings the logic of impact investing to public markets, exercising active ownership and engaging with portfolio companies, including Tesla, IBM and Apple. She crusades for social justice and against mandatory arbitration. For this reason, she filled shareholders' resolutions and has had proxy votes in the 2020 and 2021 proxy seasons. This case focuses on Nia's engagement with Tesla during the 2021 proxy season. Tesla is a leader across the renewable energy sector but has been in the headlines for sexual harassment and racial discrimination. In 2020, Nia submitted a shareholder resolution on Tesla's mandatory employee arbitration to the US Securities and Exchange Commission (SEC). In her speech to Tesla's shareholders in September 2020, Hull made her case against the company's forced arbitration for employee sexual harassment and racial discrimination claims. Tesla disputed the proposal and Nia lost the vote. Hull's actions as regards Tesla received extensive media coverage and highlighted her strategy as an activist investor. In her words, 'it was a win because it was an important move in a much larger and longer campaign'. As part of her battle, Hull decided to raise her voice and file again in October 2021. In her view, Nia's advocacy with respect to Tesla was advocacy for the entire country. Nia's resolution on Tesla's proxy ballot was crucial to her strategy for 'connecting the dots about forced arbitration'. At the end of the case, Hull must prepare a proposal to the SEC and a speech to Tesla's Board. She thought about the impact on Nia's future strategy if they didn't get 50% of the shareholders' vote during Tesla's board meeting on 7 October 2021.
Settings
Time period
The events covered by this case took place in 2021.Geographical setting
Region:
Americas
Country:
United States
Featured company
Nia Impact Capital
Employees:
11-50
Turnover:
USD 450 million
Industry:
Finance
Featured protagonist
- (female)