Investors are increasingly getting involved in questions of social purpose in relation to their investments. Building upon the recent declaration by the world’s biggest investment firm, BlackRock, that companies must have a social purpose, Markus Scholz (Head of the Competence Center for Corporate Governance & Business Ethics at FHWien der WKW) and Craig Smith (INSEAD Chair in Ethics and Social Responsibility) analyze the possibilities and consequences associated with the turn towards active investment management in their blog post. Following a critical examination, they recommend several measures BlackRock could take into consideration in order to provide more substance and credibility to their declaration. The article was published on INSEAD Knowledge, a knowledge platform hosted by the renowned French business school where Markus Scholz has been a Visiting Scholar since January 2018.
The full article can be found here: https://knowledge.insead.edu/blog/insead-blog/big-investors-call-for-company-attention-to-social-purpose-what-next-8451