![]() ![]() 'Putting your company’s purpose at the foundation of your relationships with your stakeholders is critical to long-term success…They will be more likely to support you in difficult moments if they have a clear understanding of your strategy and what is behind it'. Mr Fink writes that the uncertainty caused by the pandemic, together with the erosion of trust in traditional institutions, has served to underscore the importance of corporate purpose. The COVID-19 pandemic has underlined the importance of corporate purpose Make no mistake, the fair pursuit of profit is still what animates markets and long-term profitability is the measure by which markets will ultimately determine your company’s success'. This is the power of capitalism….It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long-term. ![]() It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. It is not a social or ideological agenda. 'Stakeholder capitalism is not about politics. As such, Mr Fink argues that stakeholder capitalism is essentially good business. Stakeholder Capitalism is good businessĪs flagged, a key theme running through the letter is the idea that companies that are driven not only by profits but by purpose – companies that deliver not only for shareholders but for key stakeholders as well – are more successful over the longer term. The letter also makes clear that investors are looking for detailed disclosure around how companies are managing these issues.Ī high level overview of the key points in he letter is below. In terms of specific areas of investor concern, Mr Fink highlights planning for the transition to a low-carbon economy and human capital management as important issues about which companies should be prepared to engage. In his 2022 letter to CEOs, BlackRock CEO Larry Fink highlights the themes he considers 'vital to driving durable long-term returns'.Ī headline message is the role of effective stakeholder capitalism (underpinned effective stakeholder engagement, clear corporate purpose and innovation) in driving positive financial as well as social outcomes over the longer term. We're about creating lasting impacts for our clients, our people and our communities. Explore our locations and connect with us. Onsite | Construction Industry Communityĭedicated and expert resources with local experience and established networks.
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