Capitalism – it can be done better.

When capitalism is researched, the defining factor is the free market, otherwise known as a market economy. The ownership of capital goods is determined by the price an individual is willing to pay, which is driven by the laws of supply and demand.

Moving into a post-pandemic 2022 and the capitalist world we live in, social consciousness is poignantly discussed. To some, this goal is far-sighted and seemingly unachievable. But, if we’ve learned anything from the leftward momentum of the past two years, the voices driving this change will not remain unheard. I don’t agree with a lot of what’s occurred from either side: violence in the streets, the term “woke,” the Republican Trumpism (spilling into Canada and makes me want to vomit) with their tea party (BBC 2010) countermovement reinvigoration, and somehow most alarming, the backlash against critical race theory. (Meyer et al. 2021) Seriously… how messed up is that.

Amidst the chaos is a bit of corporate shining light guiding the way. Blackrock’s (the world’s largest asset management firm) CEO Larry Fink (Fink, L. 2022) writes to the “CEOs and Chairs of the companies [their] clients are invested in.” in his annual letter and addresses his ideas for the future and concerns of the corporate world. After distinguishing what makes a successful CEO: “a clear sense of purpose; consistent values and crucially, they recognize the importance of engaging with and delivering for their key stakeholders,” Fink proposes the idea of Stakeholder Capitalism.

Fink states, “Stakeholder capitalism is not about politics. It is not a social or ideological agenda. It is not ‘woke.’ It is capitalism “. Expanding on the idea, Stakeholder Capitalism is the beneficial relationship between companies and communities, each relying on to prosper. The entire idea is that organizations must create immediate value for stakeholders to maintain long-term value for shareholders. Traditionally, capitalist organizations “must continually evolve as the world around them changes” (Fink, L. 2022) and that “the pandemic has turbocharged an evolution in the operating environment.”. As a class and in nearly every other I’ve attended, we have spoken of this exact idea, whether we’re relating our experiences working and learning from home, employees demanding more pay and proper acknowledgment, the rise in geopolitical tensions, or climate change.

He recognizes the distrust of traditional institutions and the polarizing

 nature of politics and the media, mentioning employers as the last line of defense for employees’ source of ethical information. The concept of Stakeholder Capitalism is to create your own change and be the change society needs to better its communities. Fink shares “employees need to understand and connect with [the CEOs’] purpose” and that “customers want to see and hear what [CEOs] stand for” and “to do business with companies that share their values.” My generation’s been banging the table about these ideals for years: the opposition of corporate greed and distrust of institutions we were raised on, preferring farm-to-table and self-governance. Heck, we even created our own money! But that’s a topic for another post.

Further on in the letter, Fink discusses capitalism and sustainability, with examples of how the movement to invest in sustainable practices has rapidly grown since his previous letter, two years prior, which outlined the importance of combating climate change. He references the automobile industries tripping over themselves to catch up to the electric vehicle demands and the decarbonization of industrial supplies such as concrete and steel. The remainder of Fink’s letter is enough to write another entire blog on. The man is something of a visionary, or he at least can influence global trends of both, investing in ethically sustainable companies and practices (the ESG movement) and reducing the barriers large corporations face when attempting to maintain funding. With Blackrock’s $10 Trillion under management (half of the USA’s GDP!), companies can rely on their expertise and influence to help drive social change while maintaining profits for their shareholders. This can be leveraged to create the new standard of Stakeholder Capitalism the world desperately needs.

Connolly, K. (2010, September 16) What exactly is the party? Bbc. (https://www.bbc.com/news/world-us-canada-11317202

Meyer, T. Severns, M. McGraw, M. (2021, June 23) “The tea party to the 10th power”: trumpworld bets big on critical race theory. Politico. ttps://www.politico.com/news/2021/06/23/trumpworld-critical-race-theory-495712

Fink, L. (2022, January 18) Larry Fink’s 2022 letter to CEOs: the power of capitalism. Markets Media. http://Larry Fink’s 2022 Letter to CEOs: The Power of Capitalism

Connolly, K. (2010, September 16) What exactly is the party? Bbc. (https://www.bbc.com/news/world-us-canada-11317202

Meyer, T. Severns, M. McGraw, M. (2021, June 23) “The tea party to the 10th power”: trumpworld bets big on critical race theory. Politico. ttps://www.politico.com/news/2021/06/23/trumpworld-critical-race-theory-495712