Laurence Fink, the chief executive of the investment firm BlackRock and one of the biggest investors in the world, shook the business world last week with an implicit threat to punish small-minded companies that “only deliver financial performance” without “a positive contribution to society.”
What’s driving the rethink isn’t a tingling of the tycoon conscience but brutal self-interest. Millennials want to work for ethical companies, patronize brands that make them feel good and invest in socially responsible companies.
Some of this is shallow and some is deep, but it’s authentic: Doing good is no longer a matter of writing a few checks at the end of the year, as it was for my generation; for many young people, it’s an ethos that governs where they work, shop and invest.
C.E.O.s tell me that this forces their hand. If companies protect groping scumbags, that hurts recruitment and they lose in the war for talent. Increasingly, a company that ignores social value loses shareholder value.
.. I believe the best industries for doing good are law (pro bono work) and certain pharmaceuticals (drug donation programs). That’s because they are held accountable by metrics: Big law firms are ranked by American Lawyer for their pro bono work (Jenner & Block is top of the list), and pharma donations are rated by the Access to Medicines Index (GSK is No. 1).
.. Other companies hailed as model global citizens include Unilever, Starbucks, Whole Foods, Mastercard, Danone and Chobani.
Specialty grocer will no longer allow ‘brand advocates’ in stores, a potential blow to local sellers
Whole Foods also is centralizing much of its decision-making regarding the assortment of products across the country. Instead of allowing brands to frequently pitch their products to individual stores or regions, Whole Foods executives in its Austin, Texas headquarters will choose a higher percentage of the items stores carry.
.. Market reports show traffic improvement since the deal closed last month, likely because the chain lowered prices on key items like eggs and milk.
.. Some consultants also say they expect local brands to take their products elsewhere due to the push to pitch Whole Foods’ headquarters.