![]() ![]() ![]() Useem said another sign of this shift in corporate thinking can be found by examining recent steps taken by the Business Roundtable, an organisation representing CEOs from America’s biggest and most influential corporations. “From the get-go, BlackRock was on my radar screen,” he said. “Russia’s aggression in Ukraine and its subsequent decoupling from the global economy is going to prompt companies and governments worldwide to re-evaluate their dependencies and re-analyse their manufacturing and assembly footprints – something that Covid had already spurred many to start doing.” He noted that governments across the world almost unanimously imposed sanctions, including taking the unprecedented step of barring the Russian central bank from deploying its hard currency reserves.Īccording to Fink, the war in Ukraine could have ramifications that stretch beyond this conflict – companies might start examining their business ties to other nations, which could lead to higher costs, increased inflation, and a “large-scale reorientation of supply chains.” Most of BlackRock’s portfolios didn’t have any significant investments in Russia prior to the conflict, but the company swiftly suspended the purchase of Russian securities in its active and index portfolios.įink said the financial isolation being experienced by Russia demonstrates the power of the capital markets and shows how quickly a nation can be ejected from the world’s economic system by governments and businesses taking action en masse.Ĭalling access to capital markets “a privilege, not a right”, Fink said the invasion has served as a catalyst for “nations and governments to come together to sever financial and business ties with Russia.” War is always a humanitarian tragedy, but the indiscriminate killing of civilians has been particularly painful to witness.”įink pledged that, “In consultation with our stakeholders, BlackRock has also joined the global effort to isolate Russia from financial markets.” ![]() We stand with the Ukrainian people, who have shown true heroism in the face of merciless aggression. “I speak for everyone at BlackRock when I say that witnessing Russia’s invasion of Ukraine has been truly heartbreaking. In a telephone interview with, Useem called Fink’s letter a “tour de force.” He said it stands out precisely because it takes a stand.įink went further than declaring his own opposition to the conflict – he unequivocally expressed support for Ukraine on behalf of his entire staff. And thus, it will be duly noted by others.” Useem is also the faculty director at Wharton’s Center for Leadership and Change Management and the McNulty Leadership Program. “But (Larry Fink) begins with Russia’s brutal attack in the first sentence. “It is notable that, typically, these statements are about the company and how markets are evolving,” said Michael Useem, a professor of management at the University of Pennsylvania’s Wharton School. He doesn’t mince words, describing it as a “brutal attack” that has “upended the world order that had been in place since the end of the Cold War.”įink’s willingness to take a political position as a corporate figure is part of a growing trend among business leaders who no longer view staying silent as the best course of action, according to a Wharton School professor and author who has focussed his academic career on studying management and leadership. ![]() When BlackRock ( BLK) CEO Larry Fink published a long letter to shareholders recently that covered a wide range of topics, it was the bold political and economic statements that commanded widespread media attention.Īs the founder of the world’s largest asset management company overseeing $10trn (£7.6trn) in investments, Fink’s influence in the financial world is indisputable.įink’s letter – which was released on 24 March and runs more than 5,000 words – leads with the invasion of Ukraine by Russia. BlackRock CEO Larry Fink spoke out against Russia’s invasion of Ukraine in his letter to shareholders - Photo: Shutterstock ![]()
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