BlackRock’s CEO annual letter: Consistency of the Message

In his latest letter to CEOs, BlackRock’s leader Larry Fink pushes back against the notion that the emphasis on ESG is about succumbing to cultural trends or is a marketing strategy. He asserts that social responsibility and profitability are not mutually exclusive, and in fact, they can and should go hand in hand. He writes:

“Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism.”

For years Fink has been consistent in his focus on ESG. He points to the fact that corporations play an important role in shaping the future and they must be responsible to all their stakeholders. In his role as chief communicator and defender of the reputation of BlackRock, one of the largest investment companies in the world, Fink is always conscious of the need to repeat the message. The nuances and contours of the message may change but the central theme is essentially the same.

In the face of the inevitable skepticism around ESG investments, BlackRock’s CEO is skillful in weaving a coherent defense of the company’s investment strategy. In the letter he lays out the different ways in which investments can lead to improvements in society and the environment; and it is the responsibility of the investor community to lead the way. Fink writes:

“But access to capital is not a right. It is a privilege. And the duty to attract that capital in a responsible and sustainable way lies with you.”

The core of his message has been consistent: corporate responsibility is one of the fundamental pillars of a successful society and economy. He goes on to say:

“It’s never been more essential for CEOs to have a consistent voice, a clear purpose, a coherent strategy, and a long-term view. Your company’s purpose is its north star in this tumultuous environment. ”

In his communications Fink is always focused on redefining and reaffirming not only the reputation of BlackRock, but also the arc of capitalism.

Read the full letter here.

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