To: i-node who wrote (52514 ) 1/16/2018 7:02:07 PM From: bentway 1 RecommendationRecommended By
Respond to BlackRock’s Message: Contribute to Society, or Risk Losing Our Support Andrew Ross Sorkin DEALBOOK JAN. 15, 2018 Laurence D. Fink, founder and chief executive of the investment firm BlackRock, is going to inform 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. “Society is demanding that companies, both public and private, serve a social purpose he wrote in a draft of the letter that was shared with me. “To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society It may be a watershed moment on Wall Street, one that raises all sorts of questions about the very nature of capitalism. “It will be a lightning rod for sure for major institutions investing other people’s money,” said Jeffrey Sonnenfeld, a senior associate dean at the Yale School of Management and an expert on corporate leadership. “It is huge for an institutional investor to take this position across its portfolio.‘‘ He said he’s seen “nothing like it.’’nytimes.com
