So shareholder activity has opened some doors, given you an effective way to voice your social and investor-based concerns, and has produced changes with company management. After a company has promised and committed to a plan of action, how does a shareholder and/or other stakeholders monitor that commitment?

Craft a plan of action that has a better chance of implementation

Stakeholders usually stand a better chance of seeing a commitment implemented if the company genuinely believes that it is in the company's best interests to pursue that course of action. The solution also will more likely be implemented if shareholders are able to negotiate a mutually acceptable plan with monitoring and accountability mechanisms.

Obtain written and public commitments

Obtaining a written, public commitment from the company to take certain steps is one way to build accountability into a voluntary course of action.

Create consequences and incentives

Activists should ensure that positive or negative consequences are associated with implementing or not implementing the plan. For example, a wood products company that voluntarily decides to become Forest Stewardship Council-certified will be well placed to supply dozens of major U.S. companies that have committed to phase out the purchase of old-growth forest products. In contrast, a company that does not comply with its public commitment to be sweatshop-free, for example, might suffer from negative publicity, which could damage its reputation and possibly even effect shareholder value.

Monitor company progress through transparency mechanisms

Regular company reports on environmental and social commitments are one way to monitor a company's commitment to a plan of action. There are different standards or models for reporting on social and environmental issues. For example, the Global Reporting Initiative (GRI) is working to establish international disclosure standards for social and environmental matters. The Stakeholder Alliance has developed a model for annual disclosure of stakeholder issues. CERES has developed a very detailed environmental reporting format for voluntary company environmental reports.

Monitor company reports through audits

Third-party auditing of company reports, environmental management systems or other commitments has become an NGO business, and can play a role in ensuring company compliance with voluntary policies. Some auditing schemes are designed for internal, rather than external auditing. For example, Verite, a private social auditing firm, internally monitors and audits companies' implementation of voluntary sweatshop policies. In the U.K., The New Economics Foundation and SustainAbility review and verify companies' external social and environmental reports.

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