2018-01-09 08:33:00 Tue ET
technology social safety nets education infrastructure health insurance health care medical care medication vaccine social security pension deposit insurance
BlackRock CEO Larry Fink emphasizes his key conviction that public corporations should make a positive contribution to society apart from boosting the bottomline. Society now demands that each public or private company serves a social purpose. To prosper over time, each company must not only deliver financial performance, but each company must also demonstrate how it makes a positive contribution to society. This kind reminder is a major watershed moment on Wall Street and raises questions about the unique nature of capitalism.
The Fink letter serves as a key lightning rod of stakeholder-value maximization for institutional investors such as BlackRock, Franklin Templeton, Vanguard, Charles Schwab, Fidelity, Allianz, State Street, PIMCO, PGIM, and so on. Key stakeholders include not only shareholders but also employees, customers, creditors, suppliers, regulators, and intellectual property assignees.
The government may fail to prepare for the future generations on socioeconomic issues such as retirement, infrastructure, automation, and education. As a result, society has to increasingly rely on the private sector in order to better respond to broader societal challenges. If a company cannot engage with the community with a crystal-clear sense of social purpose, the company ultimately loses its license to operate for better stakeholder value. For instance, some institutional investors and activist shareholders require Facebook, Apple, Microsoft, Google, and Amazon to consider the detrimental effects of mobile devices on children. Mutual funds and insurance firms such as AIG and Berkshire Hathaway can monitor whether energy companies such as ExxonMobil, BP, Phillips 66, and Saudi Aramco help mitigate environmental degradation. Also, key billionaires join the Giving Pledge campaign to curb global economic inequality. For instance, the Gates Foundation continues to help eradicate preventable diseases due to malaria, polio, Guinea worm, and smallpox in Africa and the Middle East. Nowadays, each company has to serve a social purpose in order to attract capital flows from asset management firms.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-09-03 10:44:00 Sunday ET

President Donald Trump has released his plan to slash income taxes for U.S. citizens and corporations. The corporate income tax rate will decline from 35% t
2018-12-05 09:38:00 Wednesday ET

Federal Reserve publishes its inaugural flagship financial stability report. Fed Chair Jerome Powell applauds both low inflation (2%) and low unemployment (
2018-12-29 09:32:00 Saturday ET

Andy Yeh Alpha (AYA) AYA Analytica financial health memo (FHM) podcast channel on YouTube December 2018 AYA Analytica is our online regular podcast and news
2019-06-27 10:39:00 Thursday ET

Berkeley tax economists Gabriel Zucman and Emmanuel Saez find fresh insights into wealth inequality in America. Their latest estimates show that the top 0.1
2025-10-31 12:26:00 Friday ET

With respect to wider weight loss treatment and obesity treatment, the global market for GLP-1 medications now grows substantially to benefit more than 1 bi
2023-01-03 09:34:00 Tuesday ET

USPTO fintech patent protection and accreditation As of early-January 2023, the U.S. Patent and Trademark Office (USPTO) has approved