“Turning Words into Action”

Bruce Freed & Karl Sandstrom:

BlackRock CEO Larry Fink’s recent annual letter to corporate leaders (discussed on the Forum here) correctly urges companies to contribute to society. At a time when the private sector is being pressed to address major societal issues, his call is especially important. There’s a glaring omission, however: A business cannot begin to evaluate its social impact and business risk if it doesn’t openly and forthrightly address its spending to influence political elections, and the consequences of that spending.

This is the case when public companies spend more money politically, whether openly or through secret or hard-to-track conduits. Corporate money could be significant in affecting the outcome of this fall’s congressional and state elections, with major consequences for the nation and for companies.

Why is it critical that institutional and widely diversified investors such as BlackRock promote transparency and accountability?…


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