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Stakeholder capitalism got a no-nonsense signal boost this week from BlackRock CEO Larry Fink. For the past few years, Fink has used his annual letter to company CEOs to explain why successful businesses maximize impacts beyond shareholder profits. This year was no exception. “Stakeholder capitalism is capitalism,” he wrote in his 2022 letter. “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’s refreshing to see a major market influencer like Fink — whose firm represents a whopping $10 trillion in assets — continuing to push the stakeholder capitalism conversation to the mainstream. For a growing number of leaders, the embrace of ESG and an investment strategy that incorporates climate change, inclusion, etc. is not just a good idea in theory, it gives them a competitive advantage and is good for business. We are looking forward to seeing how companies respond to this year’s letter. Shifting to these practices is a journey: some businesses are running ahead of the pack, while others still have a ways to go

 

With many stakeholder-centric steps at the center of the conversation — from better disclosures on worker pay and benefits to improved diversity, equity, and inclusion (DEI) policies to climate-friendly pledges — we expect many more will be joining the effort to watch which businesses refresh those commitments and hit the targets they set out.

 
 
 
 
FEARLESS FEATURE
 
 
 
 
Luiza Helena Trajano, founder and CEO of Brazilian commerce giant Magazine Luiza, grew her $30 billion company by catering to the needs of her poorest customers—and putting stakeholder capitalism principles into action.
 
 
 
 
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A Guide to Training New Impact Investors
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A Big Year for New Entrepreneurs
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Deploying Gender Lens VC Investments
In the two years since Beyond the Billion was launched to close the venture capital funding gap for female-founded startups, investors have deployed more than $600 million of the original $1 billion commitment into nearly 800 companies. What’s more, those companies have gone on to raise over $4 billion.
 
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BEFORE YOU GO
 
 
 
 
CFO Diversity is Growing
The number of public companies with Black and female CFOs doubled in 2021. Why the surge? Experts say it’s a benefit of bringing on more diverse board members, who are encouraging the C-suite to hire more women and people of color.
 
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Coming to a Streamer Near You?
A very important question for impact investors: what would a Silicon Valley or Billions-style parody show about the world of ESG investing look like?
 
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