As a strategy CalPERS invests in sick and ailing companies where it employs good governance practices to improvise company's overall performance. CalPERS issued Global principles of accountable Corporate Governance. Give

The California Public Employees' Retirement System (CalPERS, System) is the largest U.S. public pension fund. Its mission is to provide responsible and efficient stewardship to deliver promised retirement and health benefits, while promoting wellness and retirement security for members and beneficiaries. The CalPERS Board, through its Investment Committee, has adopted the Global Governance Principles to be adopted by companies and markets – from developed to emerging – in order to establish the foundation for achieving long-term sustainable investment returns through accountable corporate governance structures. Sustainability: Companies and external managers in which CalPERS invests are expected to optimize operating performance, profitability and investment returns in a risk-aware manner while conducting themselves with propriety and with a view toward responsible conduct. CalPERS believes long-term value creation requires the effective management of three forms of capital – Financial, Physical and Human Capital. Director Accountability: Directors should be accountable to shareowners, and management accountable to directors. To ensure this accountability, directors must be accessible to shareowner inquiry concerning their key decisions affecting the company's strategic direction. Transparency: Operating, financial, and governance information about companies must be readily transparent to permit accurate market comparisons; this includes disclosure and transparency of objective globally accepted minimum accounting standards, such as the International Financial Reporting Standards ("IFRS"). One-share/One-vote: All investors must be treated equitably and upon the principle of one-share/one- vote. Proxy Materials: Proxy materials should be written in a manner designed to provide share owners with the information necessary to make informed voting decisions. Similarly, proxy materials should be distributed in a manner designed to encourage shareowner participation. All shareowner votes, whether cast in person or by proxy, should be formally counted with vote outcomes formally announced. Code of Best Practices: Each capital market in which shares are issued and traded should adopt its own Code of Best Practices to promote transparency of information, prevention of harmful labor practices, investor protection, and corporate social responsibility. Where such a code is adopted, companies should disclose to their shareowners whether they are in compliance. Long-term Vision: Corporate directors and management should have a long-term strategic vision that, at its core, emphasizes sustained shareowner value and effective management of both risk and opportunities in the oversight of financial, physical, and human capital. In turn, despite differing investment strategies and tactics, shareowners should encourage corporate management to resist short-term behavior by supporting and rewarding long-term superior returns. Access to Director Nominations: Shareowners should have effective access to the director nomination process. Political Stability: Progress toward the development of basic democratic institutions and principles, including such things as: a strong and impartial legal system; and, respect and enforcement of property and shareowner rights. Transparency: Financial transparency, including elements of a free press, is necessary for investors to have truthful, accurate and relevant information. Productive Labor Practices: No harmful labor practices or use of child labor. In compliance, or moving toward compliance, with the International Labor Organization (ILO) Declaration on the Fundamental Principles and Rights at Work. Corporate Social Responsibility – Eliminating Human Rights Violations: Corporations should adopt maximum progressive practices toward the elimination of human rights violations in all countries or environments in which the company operates. Additionally, these practices should emphasize and focus on preventing discrimination and/or violence based on race, color, religion, national origin, age, disability, sexual orientation, gender identity, marital status, or any other status protected by laws or regulations in areas of a company's operation. Market Regulation and Liquidity: Little to no repatriation risk. Potential market and currency volatility are adequately rewarded. Capital Market Openness: Free market policies, openness to foreign investors, and legal protection for foreign investors. Settlement Proficiency/Transaction Costs: Reasonable trading and settlement proficiency and reasonable transaction costs. Disclosure: Companies should adopt corporate reporting guidelines in order to measure, disclose, and be accountable to internal and external stakeholders for organizational performance. Financial Markets: Policy makers and standards setters which impact investment portfolio risk and return should promote fair, orderly, and effectively regulated financial markets.