"What Larry Fink's 2019 Letter Means for the Future of Business", 24 January 2019

Last year, Larry Fink's annual letter to CEOs forged its way into public and corporate consciousness. In it, Fink, chief executive officer of BlackRock Inc., the world's largest investment firm, made the bold declaration that "to prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society."

...This year's highly anticipated letter from Fink appeared on January 17, reiterating and expanding upon many of his 2018 points. Its advice to business reflects sustainability best practice and is fantastic news for anyone with concerns about today's social disruption and environmental destruction.....

"Purpose" is happening, whether we like it or not

 A 2017 survey indicated that although businesses are highly enthusiastic about it, there is no consensus as to what "purpose" actually means...[ Fink]  equates purpose with long-term value creation and hails it as an "animating force" for achieving profits via a stronger strategy and culture, not as a detriment to growth...

...Questions about implementation are growing louder

...BlackRock aims to effect change through engagement and discussion with companies, not hostile shareholder resolutions—and it has cause to argue that this is working. The 2018 proxy season saw far fewer shareholder proposals on climate, precisely because the energy and extractives sector is shifting its approach in an attempt to anticipate and respond to pressure...

...This year's BlackRock letter marks a further step forward in an increasingly high-stakes debate about the future of the corporation and its nascent shift from shareholder value to stakeholder trust, from risk to impact, and from growth to sustainability.