Why we’re all impact investors now
By Chana R. Schoenberger – Laurence “Larry” Fink, the founder and CEO of BlackRock, the world’s largest asset manager, which has more than $6 trillion in assets under management, issued an open letter to CEOs this past January—and reportedly sent many of them into a tizzy.
Fink’s letter said society is demanding that companies, public and private, need to “serve a social purpose,” benefiting not just shareholders but also employees, customers, and neighbors. And, he explained, from that point forward, BlackRock would be “eager to participate in discussions about long-term value creation and work to build a better framework for serving all your stakeholders.”
Executives, he wrote, should be able to answer their questions about the company’s actions. For example, what role does the company play in the community? How is it managing its impact on the environment? Is it working to create a diverse workforce?
“The time has come for a new model of shareholder engagement,” he wrote.
For nearly 50 years, many have been guided by the idea, laid out most famously by Milton Friedman, that the most appropriate way to create social change is to give profits to investors, and taxes to the government, and use that money to make an impact. more>
Posted in Business, Economy, Education, How to, Regulations
Tagged Business improvement, Capital, Chicago Booth, Impact investor, Jobs, Leadership, Noncompetes, Organization
By Simon Deakin – The critical thing with Brexit is to think about trade and regulation as being two sides of the same coin. When we talk about international trade we are really asking, which regulatory regime do we want to sign up to?
Inside the single market there is high degree of harmonization and convergence of rules, or what is sometimes called alignment. Regulatory alignment is the condition of frictionless trade in the European single market. It is a uniquely deep international trading arrangement because of the high degree of regulatory compliance that goes with EU membership.
We can’t achieve regulatory autonomy post-Brexit without giving up frictionless trade. So UK policy makers have to think about the consequences of moving away from the single market.
The first impact will be felt in those industries which rely upon regulatory alignment in order to function. For the car industry, and large manufacturers like Airbus, European supply chains will be very negatively affected by regulatory divergence.
That is why it is not surprising to hear that the car companies are going to put their production on hold if there is a prospect of a hard Brexit. They have said that they will pause their production lines for a while to see how their new supply chain arrangements can work. That will have a very serious impact on jobs.
Restrictions on migration from the EU after the transition period ends will not result in more jobs for British workers. The British government is likely to extend bespoke arrangements to allow firms in sectors such as agriculture, hospitality and construction to employ foreign workers outside the scope of British labor laws.
In some sectors, employers faced with rising wage costs are likely to respond by investing in labor-saving technologies, but that while this will improve productivity, it will not lead to net job creation. more>
Posted in Banking, Business, Economy, Education, History, How to, Leadership, Media, Net, Regulations
Tagged Brexit, Business improvement, Capital, Government, Jobs, Leadership, Super regions
By Andrew Yang – You would have to have been asleep these past years not to have noticed that manufacturing jobs have been disappearing in large numbers. In 2000 there were still 17.5 million manufacturing workers in the U.S. Then, the numbers fell off a cliff, plummeting to less than 12 million before rebounding slightly starting in 2011.
More than 5 million manufacturing workers lost their jobs after 2000. More than eighty percent of the jobs lost – or 4 million jobs – were due to automation. Men make up 73% of manufacturing workers, so this hit working class men particularly hard. About one in six working-age men in America is now out of the workforce, one of the highest rates among developed countries.
What happened to these 5 million workers? A rosy economist might imagine that they found new manufacturing jobs, or were retrained and reskilled for different jobs, or maybe they moved to another state for greener pastures.
In reality, many of them left the workforce. One Department of Labor survey in 2012 found that 41 percent of displaced manufacturing workers between 2009 and 2011 were either still unemployed or dropped out of the labor market between within three years of losing their jobs.
This is a good indicator of what will occur when truck drivers lose their jobs. Truck drivers’ average age is 49, 94% are male, and they are typically high school graduates. Driving a truck is the most popular job in 29 states – there are 3.5 million truck drivers nationwide. more>
Posted in Broadband, Business, Economic development, Economy, Education, History, Regulations, Technology, Transportation
Tagged Automation, Business improvement, Jobs, Productivity, Technology, truck drivers
By David French – We usually place outsized emphasis on elections that define our politics and too little emphasis on the values that define our culture.
But it was the nomination of Kavanaugh and the wrenching debate about core cultural and constitutional values that dominated American discourse these past few weeks. It’s a debate that illustrated the fundamentally different ways in which conservatives and progressives view the world, and it unlocked not just an intellectual response but an emotional response that has radicalized otherwise reasonable and temperamentally moderate individuals into believing that the other side hates even the good people in their own tribe.
And so when Ford came forward, it’s as if her allegations landed in two different countries. The good-faith residents of Redworld were skeptical and said, “Prove it.” The good-faith residents of Blueworld believed Ford and said, “Finally, she has a chance for justice.” The presumptions were diametrically opposite, and everything that followed turned on those different presumptions. more>
Posted in Business, CONGRESS WATCH, Economy, Education, History, Leadership, Media, Regulations
Tagged Business, Congress Watch, Government, Leadership, Regulations, Supreme Court, United States Congress
By Paul Sweeney – The privatisation of state assets in Europe has added little value and was a costly distraction from the proper management of public services and development of a strong public sector ethos, delivering excellent services. Despite the privatisation of hundreds of billions of asssets, the outsourcing of public services, and fresh privatised ways of funding public services, spending in the modern state has not shrunk, though the value of state assets has been reduced.
The public sphere, open spaces, public ideas and the scientific commons which are open to all are coming under threat of being fenced off, privatised by extensions and enforcement of Intellectual Property, trademarks, copyright laws etc.. This needs to be curbed. The state has been remiss in protecting its own assets from privatisation over the past four decades and, simultaneously, it has given away substantial parts of this public sphere to private interests. It has done this by being over-zealous in protecting the “rights” of major corporations, drug companies, tech and data companies and rich individuals through extended patent rights, and the like.
Patents serve the useful purpose of protection for inventors whose ideas should be rewarded in order to encourage further innovation. But the balance has shifted from protecting innovation to blocking it. It is the state which provides this protection through internationally agreed laws and through enforcement. The growth in patents, trademarks, copyrights and industrial designs has been very high. The state is now agreeing to renewing patents and granting extensions to the likes of branded drugs, thanks to lobbying. Many patents are acquired to build a monopoly and to act as a deterrent against rival innovations.
Some MNCs now troll and hoover-up patents and others exist to build major patent portfolios with the purpose of blocking others’ innovations, moving upstream to protect broad future possible inventions. more>
Posted in Business, Economic development, Economy, History, Leadership, Media, Net, Regulations, Science, Technology
Tagged Business improvement, Capital, Government, Internet, Leadership, Super regions, Technology