Why Business can’t afford to not have a clearly defined Purpose

The saying ‘Money Talks’ has never been more pertinent as we face the head winds of climate change, a range of global health crisis and a political environment that ranges from dysfunctional to deeply ineffectual.

This letter written by Larry Fink the CEO of Blackrock the world’s largest asset manager, addressed to the world’s leading Corporate CEO’s highlights the fundamental role that Purpose plays in meeting the ever-increasing expectations of shareholder’s for companies to act in the best interests of not only themselves but society as a whole. He also clearly outlines the importance of being purpose-driven if they want to have any chance of achieving long-term growth and shareholder return. I found this letter to be a ray of hope for all of us, that the Corporate sector can step up and fill the gap being left by Government, in addressing serious social and environmental issues, without it being at the expense of profit.

The high expectations of Millennials are already making a difference, but as Gen Z start to consume more and become part of the workforce, their moniker as the ‘Purpose Generation’ will be felt profoundly by organisations around the world. Larry Fink has given them a very clear directive on how they need to respond if they are to stand a chance of not just being profitable in the future but existing at all. His call to arms for leadership, purpose and action is a great carrot as he is clearly telling them how they can set themselves up to thrive in the future, with the back-up of a ‘$7.4Trillion Stick’ that send a clear message that without a defined Purpose, they will struggle to find the investment they will need to fund their future.

Larry Fink’s – Profit and Purpose