February 9, 2018

Milton Friedman Was Wrong (Or, The Blackrock Letter, Part II)

(My latest is posted here on Medium...)

The debate over the purpose of a corporation rages on. For decades, we've been told that the only real goal of a company should be profit and shareholder value. Any other benefits to society, Milton Friedman and the like told us, will come from pursuing the first goal.

But now, some big investors are challenging the idea. They're asking companies to think about the long-term, to consider their role in society, and embrace the idea of purpose.

My last post posed the question, "Does Wall Street Finally Care About Sustainability?", focusing on a recent letter from the CEO of Blackrock (world's largest asset owner) to global CEOs. Then Vanguard and other big investors came forward with their own letter.

And yet, some executives don't quite buy it.

So after some debates I've witnessed and taken part in, I wrote part 2 of the discussion on the Blackrock letter and posted it on Medium here.

Please check it out.


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