This engagement with company management
is a critical phenomenon because these
investors, who are “outsiders” in the standard
corporate governance typology, are promoting
a more relational corporate governance system
(Pendleton and Gospel, 2005; Mallin
et al ., 2005). An additional important trend in the UK (discussed more fully below) is the
increasing collaboration among some pension
funds, fund managers, insurance companies
and investment consultants to develop
corporate governance and corporate social
responsibility standards. Such actions send
coordinated market signals about investor
expectations on these two vital issues.