Much of the literature on corporate governance assumes that investors care only about money. What happens when some investors and consumers are socially responsible (i.e., in making decisions, they put a positive weight on the utility of others)? While divestment and boycotting can nudge firms to be socially responsible, they are ineffective unless the social inefficiency is very large. Even when they are effective, they induce a provision of public goods that is disproportionately small relative to the number of socially responsible investors/consumers. Shareholder engagement can lead to a better outcome.