Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 – Your Complete Study Guide to Success!

A shareholder proposal primarily addresses governance or sustainability practices. These proposals are mechanisms through which shareholders can request changes or improvements in corporate governance structures, policies, or practices. They often seek to enhance transparency, accountability, and ethical considerations within a company.

These proposals can cover a wide range of topics, such as board diversity, executive compensation, environmental impact assessments, and corporate social responsibility initiatives. By voicing their opinions through proposals, shareholders influence management decisions and promote better governance and sustainability practices.

The other options—product development strategies, marketing budget allocations, and investment strategies—do not typically fall under the purview of shareholder proposals. These areas are usually managed by the company's internal teams and are considered operational rather than governance-related issues. Shareholder proposals are more focused on how the company is governed and how it manages its broader impact on stakeholders and the environment.