Final answer:
Frankie is characterized as a responsible shareholder because he is actively participating in the governance of VNO Corporation by voting on policies at annual shareholder meetings. He uses his voting rights, which are a function of his share ownership, to influence the company's direction, particularly in areas of social responsibility.
Step-by-step explanation:
Frankie is a shareholder in VNO Corporation and regularly attends annual shareholder meetings, voting on policies that he feels are particularly relevant to the firm's social responsibilities. This behavior characterizes Frankie as a responsible shareholder. Shareholders, not to be confused with stakeholders, are individuals or entities that own a share of a corporation, and thus have invested capital with the expectation of receiving a positive return when the company is profitable. The notion that shareholders are entitled to the maximum return possible on their investment was prominently advocated by economist Milton Friedman, underscoring the important role shareholders play in the governance of a public company.
In addition to financial returns, shareholders like Frankie who actively participate in governance by voting at shareholder meetings demonstrate a commitment to the company's social and ethical responsibilities. Public companies like VNO Corporation are owned by shareholders who, collectively, are a large and diverse group, holding the power to vote for a board of directors. These directors are tasked with hiring executives to manage the company's daily operations. Voting rights are proportional to the number of shares owned; therefore, Frankie's act of voting signifies he is utilizing his rights as a shareholder effectively.