a striking letter
sent out to business leaders by BlackRock, the largest investment firm in the world. The article and letter are worth a read. In the absence of significant government action, is this the only hope for countering the automatic inequities that result from exercisings only the profit motive of capitalism?
The letter informs..
..business leaders that their companies need to do more than make profits — they need to contribute to society as well if they want to receive the support of BlackRock.
Mr. Fink has the clout to make this kind of demand: His firm manages more than $6 trillion in investments through 401(k) plans, exchange-traded funds and mutual funds, making it the largest investor in the world, and he has an outsize influence on whether directors are voted on and off boards.
From his letter:
“Society is demanding that companies, both public and private, serve a social purpose,...To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”
“many governments are failing to prepare for the future, on issues ranging from retirement and infrastructure to automation and worker retraining...As a result, society increasingly is turning to the private sector and asking that companies respond to broader societal challenges.”
We can only hope.....
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