"I do believe COVID is only going to accelerate our clients' and our employees' desire for a stronger, more articulated business purpose."Įven before the pandemic, BlackRock and other asset mangers were noticing significant gaps in price-to-earnings (P/E) ratios among companies in the same sector, a phenomenon Fink attributes to corporate purpose. "In how we adapt, how we change, how we are trying to connect with our clients, we're proving our purpose more than ever before," he said. While Fink noted it's difficult to compare apples to apples when it comes to financial performance across industries, as some sectors have faced more significant disruptions than others, he agreed that businesses with a strong purpose have risen to the top. Research indicates that companies and investment funds with strong environmental, social, and governance profiles outperformed the S&P 500 in the early months of the pandemic. "During COVID, we’re seeing this very clearly." LARRY FINK BLACKROCK LICENSE"For those who are earning their license to operate in every community, their shareholders are the huge beneficiary of that because when you execute that in the long run, you have very strong, durable profitability," Larry Fink told attendees at the Chamber Foundation's conference this week. Corporate purpose breeds profitability, Larry Fink says Speaking on Tuesday, Fink shared his perspective on the state of business leadership amidst the COVID-19 pandemic, and more than 1,500 people tuned in to listen. But after a string of successive letters calling on CEOs to embrace business models that serve all stakeholders, not just shareholders, he is emerging as a rising star in the sustainable finance space as well. Many view his decision to speak about stakeholder capitalism as a sign the two worlds are poised to converge - and that purpose-driven and profitable businesses will soon be viewed as one and the same. "I do believe the business community has shown more purpose than any time in my 44 years of business," he said.Īs the CEO of the world's largest asset manager, Larry Fink is inherently revered among rugged traditional capitalists. Chamber of Commerce Foundation's 2020 Corporate Citizenship Conference on Tuesday, Fink called the coronavirus pandemic "the largest crisis in our lifetimes," but he feels business leaders have risen to the occasion. We're undoubtedly in for a difficult and unpredictable winter, but BlackRock CEO Larry Fink thinks the business community is ready. The surge in infections is prompting communities around the world to re-issue business and school closures or impose partial lockdowns, creating a new wave of economic uncertainty and leaving businesses and their employees wary about what will happen next. alone has surpassed 11 million cases since the start of the pandemic - and hospitalization rates are now reaching record levels, with 150,000 new admittances reported on Monday. Globally, 4 million new COVID-19 cases were reported last week. New coronavirus infections are spiking across the U.S. (Image: BlackRock CEO Larry Fink speaks at the 2016 Annual Meeting of the World Economic Forum in Davos, Switzerland.)
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