Editorial: Finding purpose in profits
In mid-January, the chairman and CEO of global investment firm BlackRock, Inc. wrote an open letter to CEOs worldwide, compelling them to combat climate change. As the head of the world’s largest asset manager, Larry Fink holds a unique position of influence, particularly with publicly traded companies, and his annual letter receives a lot of attention in the corporate world.
For the last couple of years, Fink’s letter has urged companies to think about more than the bottom line, asking them to find ways to improve the societies in which they operate. While companies must maintain a fiduciary responsibility to their investors, Fink says thinking about social issues and community well-being is ultimately good for any firm’s long-term outlook.
Considering the greater good of the community is probably a no-brainer for most business leaders, which is why you find the best ones participating on nonprofit boards, volunteering, and giving a slice of their revenues to charitable causes. Yet, Fink’s letters may have been among the highest-profile efforts to date to link profits and purpose. Especially in the public corporate world where the very system pushes executives to be beholden to quarterly results, stock prices and the bottom line at the expense of nearly all else, it is eye-opening to hear from the world’s leading investor that a singular focus on money isn’t the only bottom line we should be paying attention to.
This month, WBJ honors our Business Leaders of the Year and the Hall of Fame Class of 2020, who all make for wonderful examples of how best to succeed in the business world. Yet, more importantly, and pertinent to Fink’s letters, you will find each of them have done good business while keeping in mind the dual higher purpose in running their organizations. Brandale D. Randolph (Small Business Leader of the Year) essentially created a company to give job opportunities to ex-convicts. Paul Sellew (Innovative Business Leader of the Year) wants to change the way the world grows and consumes its food. Karen A. Koller, Linda Cavaioli (WBJ Hall of Famers) and Stephanie Page (Nonprofit Business Leader of the Year), as the heads of high-profile nonprofits, have dedicated their entire careers to community betterment. Scott Richardson (WBJ Hall of Famer) is lauded for his ability to find the perfect balance between purpose and profits, which has made his Hopkinton architecture firm successful over the long term. The Hyder family (Family Business Leaders of the Year) carry on their father’s tradition and remain an important staple in community-focused small business. Harry Kokkinis (Large Business Leader of the Year) is keeping the operations of long-time Worcester manufacturer Table Talk Pies in the city, despite lower-cost alternatives elsewhere.
As the global corporate mindset shifts toward a more well-rounded world view of success, these are stories which must be told. Central Massachusetts isn’t home to many CEOs singularly focused on the bottom line (the region has only 16 public companies), but as the world moves toward solving a number of complex problems, it is critical to have leaders who understand the important place their company has in the community it operates in.
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