Has the Era of Sustainable Capitalism Arrived?

BlackRock's CEO says companies must serve a social purpose to prosper over the long run

Jon Hale 23 January, 2018 | 3:01PM

McDonalds is taking a step in the right direction

We're entering a new era of "sustainable capitalism": an attempt to make the global economy more resilient and work for more people over the long run. The evolution of global capitalism since the end of the Cold War has resulted in the world's largest corporations growing to almost unimaginable proportions, conferring on them enormous influence on the world today, while reducing the capacity of sovereign governments to regulate corporate activity in consistent and effective ways.

Sustainable capitalism acknowledges those central facts and asks corporate leaders to assume a greater level of social responsibility, taking into account the concerns of all stakeholders, not just those of shareholders.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Ford Motor Co4.24 USD-2.75
McDonald's Corp160.33 USD-0.72

About Author

Jon Hale  Jon Hale is a consultant with Morningstar Institutional Investment Consulting.

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