If you own shares of a company, you literally own part of that company. To be able to sell shares of your company, you have legal obligations. By putting your shareholders capital at risk by unsafe practices, you fail to deliver on your obligations and can be held liable. Shareholders of large companies are not exclusively greedy investors. Retirement funds can also be backed by capital that is bound in stocks. If your fund holds shares that lost value due to incompetence of the company executives, it is similarly your legal obligation to take legal action in the interest of the people who paid into your fund.