They may hijack your brand to advance their own agendas. Political activists, or the media, may politicize things your company does. This polarization presents a host of new challenges for CEOs. Most notably, it’s dramatically accelerating how technology is reshaping life and business. Innovative companies looking to adapt to this environment have easier access to capital to realize their visions than ever before. And the relationship between a company, its employees, and society is being redefined.ĬOVID-19 has also deepened the erosion of trust in traditional institutions and exacerbated polarization in many Western societies. It’s creating new businesses and destroying others. It’s changing how people work and how consumers buy.
The pandemic has turbocharged an evolution in the operating environment for virtually every company. Make no mistake, the fair pursuit of profit is still what animates markets and long-term profitability is the measure by which markets will ultimately determine your company’s success.Īt the foundation of capitalism is the process of constant reinvention – how companies must continually evolve as the world around them changes or risk being replaced by new competitors. It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long-term.
#Top stock newsletters 2016 full#
In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. It is not a social or ideological agenda. Stakeholder capitalism is not about politics. This is the foundation of stakeholder capitalism. Time and again, what they all share is that they have a clear sense of purpose consistent values and, crucially, they recognize the importance of engaging with and delivering for their key stakeholders.
Over the past three decades, I’ve had the opportunity to talk with countless CEOs and to learn what distinguishes truly great companies. When my partners and I founded BlackRock as a startup 34 years ago, I had no experience running a company. I write these letters as a fiduciary for our clients who entrust us to manage their assets – to highlight the themes that I believe are vital to driving durable long-term returns and to helping them reach their goals. That is why, for the past decade, I have written to you, as CEOs and Chairs of the companies our clients are invested in. It is a long-term endeavor, and we take a long-term approach. The financial security we seek to help our clients achieve is not created overnight. The majority of our clients are investing to finance retirement. We believe this diversified but highly active approach makes Alliance Trust an ideal holding for all generations of investors, whether you’re paying for university or a first home, saving for retirement or leaving a legacy.Each year I make it a priority to write to you on behalf of BlackRock’s clients, who are shareholders in your company. 7 The resulting portfolio is diversified across countries and industries but its individual holdings are very different from any index-tracking fund. WTW tasks each Stock Picker with investing in no more than 20 stocks in which they have the highest level of conviction. 6 Its scale helps us to keep costs down for investors, while the global breadth and depth of WTW’s resources has enabled it to build and manage a diverse team of nine best-in-class 1 Stock Pickers with complementary investment approaches for Alliance Trust. 4 WTW is a leading global investment group, directly managing $180.4 5 billion for institutional investors and advising them on $3.4 trillion. Shareholders benefit from having Willis Towers Watson (WTW) as our investment manager.
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