How BlackRock created new urgency for social purpose
Companies can no longer avoid the need to identify and articulate a purpose that goes beyond making money.
Corporate trust and the development (or loss) of social licence is a hot topic for Australian corporates, and with major investors demanding companies do more this looks set to continue.
Chief among the blue-chip agitators is BlackRock, with CEO Larry Fink demanding corporates explain how their organisations contribute to society.
Here’s what he said in a letter sent this year:
“To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society … Without a sense of purpose, no company, either public or private, can achieve its full potential. It will ultimately lose the license to operate from key stakeholders”.
It’s a trend we will be watching closely.
Read the full article at: mslgroup.com