The company, founded in 1988 by Fink and seven others, sells a variety of investment products, including mutual funds, exchange-traded funds, and 401(k) plans, and per its most recent quarterly regulatory filing has about $6.3 trillion in assets under management. BlackRock manages an enormous amount of moneyīlackRock is the largest investment management company in the world. So even given those uncertainties, the fact that BlackRock would be so outspoken has garnered quite a bit of buzz and attention. The New York Times’s Andrew Ross Sorkin, who first reported on the letter, wrote that it is “likely to cause a firestorm in the corner offices of companies everywhere and a debate over societal responsibility that stretches from Wall Street to Washington.”Įxactly what BlackRock will be looking for when it comes to “social purpose” or “benefit” for all stakeholders, or what it will do about investing in companies that aren’t living up to those standards, isn’t yet clear from the letter.īut people are paying attention because the company controls an enormous amount of investment - according to Bloomberg, one of every three dollars investors send to fund companies in America.
Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Society is demanding that companies, both public and private, serve a social purpose. “Indeed, the public expectations of your company has never been greater,” he wrote, continuing: 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 firm invests encouraging them to consider the societal implications of their business decisions and to focus on their long-term plans. 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.
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