The Questionable Era of Social Purpose

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Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.

Laurence D. Fink.

P.S. Eric Posner disagrees:

There is no reason to believe that CEOs are capable of determining the best social uses for a corporation’s funds. Do you want the CEO of Exxon or Coca-Cola to use dollars that would otherwise go into lowering the prices of their products to fund the latest climate-denial institute or an art museum in a wealthy community? Or would you rather use those dollars for your own charitable interests?

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