BlackRock, the world's largest asset manager, expects the
companies in which it invests to do far more than deliver quarterly
profits. In his most-recent annual letter to CEOs of the companies in
BlackRock's portfolio, BlackRock CEO Larry Fink calls on
companies to "serve a social purpose," and to articulate
how they make "a positive contribution to society." In
Fink's view, "Companies must benefit all of their
stakeholders, including shareholders, employees, customers and the
communities in which they operate."
Despite one critic's quip that he "didn't know Larry Fink
had been made God," the increasing popularity of index
investing means that companies are advised to take heed of
BlackRock's views, together with those of its primary
competitors, Vanguard Group and State Street Global Advisors. A
recent post on a Harvard Law School blog provides useful tips for companies
attempting to navigate the "new world order of passive
investing," concluding that "for the
