BlackRock’s Larry Fink is telling CEOs to consider their societal responsibilities — but it’s not entirely clear what he means.
The man at the helm of the world’s largest investment company raised eyebrows on Tuesday with a letter to the CEOs of the biggest public companies on the globe: Be good with your business decisions, or else.
Larry Fink, the founder, and chief executive of investment firm BlackRock, penned a letter to the CEOs of the companies in which his more than $6 trillion firms invests encouraging them to consider the societal implications of their business decisions and to focus on their long-term plans. “Indeed, the public expectations of your company have never been greater,” he wrote, continuing:
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. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.