|
| |
Stakeholder capitalism got a no-nonsense signal boost this week from BlackRock CEO Larry Fink. For the past few years, Fink has used his annual letter to company CEOs to explain why successful businesses maximize impacts beyond shareholder profits. This year was no exception. “Stakeholder capitalism is capitalism,” he wrote in his 2022 letter. “In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders.”
It’s refreshing to see a major market influencer like Fink — whose firm represents a whopping $10 trillion in assets — continuing to push the stakeholder capitalism conversation to the mainstream. For a growing number of leaders, the embrace of ESG and an investment strategy that incorporates climate change, inclusion, etc. is not just a good idea in theory, it gives them a competitive advantage and is good for business. We are looking forward to seeing how companies respond to this year’s letter. Shifting to these practices is a journey: some businesses are running ahead of the pack, while others still have a ways to go.
With many stakeholder-centric steps at the center of the conversation — from better disclosures on worker pay and benefits to improved diversity, equity, and inclusion (DEI) policies to climate-friendly pledges — we expect many more will be joining the effort to watch which businesses refresh those commitments and hit the targets they set out.
|
| |
|
| |
|
|
|
|
| |
Luiza Helena Trajano, founder and CEO of Brazilian commerce giant Magazine Luiza, grew her $30 billion company by catering to the needs of her poorest customers—and putting stakeholder capitalism principles into action.
|
| |
|
| Putting Regenerative Farming on the Menu |
| Could the sustainable protein of the future include both plant-based options and greener beef? In the heart of Texas cattle country, ranchers are shifting to regenerative farming practices that keep soil healthy to do exactly that — and impact investors are taking notice. |
| |
|
| A Guide to Training New Impact Investors |
| Educating the next generation of impact investors means rethinking the traditional MBA. As part of FT’s 2022 Responsible Business Education Awards, LeapFrog Investments’ Felix Olale explains how the pioneering impact firm trains future leaders to identify opportunities to create impact beyond the bottom line. |
| |
|
|
|
| |
| |
| INCLUSIVE ENTREPRENEURSHIP |
|
|
|
|
|
| |
| A Big Year for New Entrepreneurs |
| A record-breaking 5 million Americans became entrepreneurs in 2021, the highest single-year increase in 20 years. Showing the fastest growth rates were women and people of color, according to the US Census Bureau. As we work to rebuild the economy, it’s essential that everyone has the opportunity to reap the benefits. |
| |
|
| Deploying Gender Lens VC Investments |
| In the two years since Beyond the Billion was launched to close the venture capital funding gap for female-founded startups, investors have deployed more than $600 million of the original $1 billion commitment into nearly 800 companies. What’s more, those companies have gone on to raise over $4 billion. |
| |
|
| CFO Diversity is Growing |
| The number of public companies with Black and female CFOs doubled in 2021. Why the surge? Experts say it’s a benefit of bringing on more diverse board members, who are encouraging the C-suite to hire more women and people of color. |
| |
|
| Coming to a Streamer Near You? |
| A very important question for impact investors: what would a Silicon Valley or Billions-style parody show about the world of ESG investing look like? |
| |
|
|
