Insider Q&A: Arjuna Capital's Natasha Lamb

MANCHESTER-BY-THE-SEA, Mass. (AP) — When highly profitable companies like Microsoft urge shareholders to reject an activist investor's proposal to change corporate policy, investors almost always abide.

So it was a shock when nearly 78% of shareholders at Microsoft's Nov. 30 annual meeting voted to demand more accountability from the company in responding to workplace sexual harassment complaints, including allegations involving co-founder Bill Gates.

Behind the winning proposal was Natasha Lamb, co-founder and managing partner of the socially-minded investment firm Arjuna Capital. Lamb talked with The Associated Press about Microsoft and investors' growing interest in environmental, social and governance assets, known as ESG. The interview has been edited for length and clarity.

Q: Were you surprised at how many Microsoft investors supported this?

A: I was surprised. If you look at the history of Microsoft, there have been very few ESG proposals for one thing and very few high votes. What has changed, other than the Wall Street Journal breaking the storyon Bill Gates, is investors expressing concern not just about that, but about years of mismanagement on sexual harassment. Other investors are paying more attention. We had some large firms reach out to us about the proposal. And then, I have to wonder if Melinda French (Gates’ ex-wife and Microsoft shareholder) voted in favor.

Q: Was this more about Bill Gates or systemic issues?

A: There’s this reckoning with what’s happening systemically within companies and the culture that’s set from the top. The shift that’s happening from an investor perspective is saying this can no longer be in the shadows. And if you’re in Silicon Valley, if you’re anywhere right now, it’s a very competitive labor market. How are you...