Time to pivot to purpose advises Larry Fink, CEO of BlackRock, world’s largest asset manager that oversees $10 trillion. Fink defended its focus on the interests of society as well as on profits.
“If you stay true to your company’s purpose and focus on the long term, while adapting to this new world around us, you will deliver durable returns for shareholders and help realize the power of capitalism for all.”
More and more, asset managers analyze corporate performance on environmental, social and governance-related issues to increase returns and attract cash from investors focused on matters such as workforce diversity or how to cut carbon emissions.
“Companies perform better when they are deliberate about their role in society and act in the interests of their employees, customers, communities, and their shareholders.”
Fink also spoke on how capitalism has the power to shape society and act as a powerful catalyst for change. He emphasized that businesses cannot go it alone – it would require a combination of government and private sector.