Black Rock is one of the world’s most influential investment firms, managing more than $6 trillion in investments and it appears their Founder and CEO, Laurence D. Fink, has become the latest in a long line of social impact advocates. In a letter shared with the New York Times, Fink outlines to corporate executives that they need to “contribute to society” if they want to receive BlackRock’s support. In the letter, Fink cites Government’s failings to meet the needs of society and says,
“Society increasingly is turning to the private sector and asking that companies respond to broader societal challenges…Society is demanding that companies, both public and provide, serve a social purpose.
The time has come for a new model of shareholder engagement – one that strengthens and depends communication between shareholders and the companies that they own…shareholder engagement has been too focused on annual meetings and proxy votes. If engagement is to be meaningful and productive..then engagement needs to be a year-round conversation about improving long-term value.”
Read the full New York Times article here.
