Laurence D. Fink, founder and chief executive of BlackRock, the world’s largest institutional investor, recently set the financial world abuzz with aletter to the CEOs of the world’s largest public companies. He notified them that henceforth BlackRock will be holding them accountable for more than profits. They must also contribute to society.
Business Insider called it “a warning shot to CEOs across the world.” The New York Times suggested, “It may be a watershed moment on Wall Street.” The Harvard Business Review asked, “Does Wall Street Finally Care About Sustainability?” Barron’s said, “When BlackRock talks, people listen.”
At least some on Wall Street are getting the message that even though the economy is growing, it isn’t working for most people and government is failing to provide for their unmet needs. Fink went on to observe that “…[s]ociety increasingly is turning to the private sector and asking that companies respond to broader societal challenges… To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society.”
[For more on this story by David Korten, go to http://www.yesmagazine.org/new...wall-street-20180220]
Comments (0)