• About Us
  • Get Insights to Your Inbox
Monday, December 11, 2023
Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Insights@Questrom
  • Our Insights
    • All
    • Business Challenges
    • Business Education
    • Business Functions
    Oh, Christmas tree: The economics of the US holiday tree industry

    Oh, Christmas tree: The economics of the US holiday tree industry

    How AI Chat Search Could Disrupt Online Advertising

    Spotify CEO cites “expensive” capital as factor in layoffs. What does that mean?

    EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

    EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

    Can Important Unions Collapse and Disappear?

    Can Important Unions Collapse and Disappear?

    The Right Amount of Cards, Cash and ID to Carry in Your Wallet

    Why Is Everyone So Unhappy at Work Right Now?

    Scrapping the state’s liquor license law makes economic sense

    Scrapping the state’s liquor license law makes economic sense

    Airlines are frustrating travelers by changing frequent flyer program rules – here’s why they keep doing it

    Airlines are frustrating travelers by changing frequent flyer program rules – here’s why they keep doing it

    Redirecting Innovation: Can We? Should We?

    Redirecting Innovation: Can We? Should We?

  • Videos & Podcast
    • All
    • Podcast
    • Videos
    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Questrom $50K Case Competition: In the Trenches of Sustainability with Casella

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    The Optimistic Pessimist

    Shein & Forever 21 Strike a Deal

    Shein & Forever 21 Strike a Deal

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    Questrom and BU Means Innovation and Entreprenuership

    A new travel nightmare: New passport delays lasting 13 weeks

    A new travel nightmare: New passport delays lasting 13 weeks

    Leadership Communications

    Leadership Communications

    Demotivating Effects of Relative Performance Feedback on Middle-Ranked Workers’ Performance

    Demotivating Effects of Relative Performance Feedback on Middle-Ranked Workers’ Performance

    S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

    AI: What is it and how will it impact business?

    Is Creativity in Advertising Dead in the age of AI?

    Is Creativity in Advertising Dead in the age of AI?

  • Insights Events
    • Events
    • Insights Live
    • Questrom Institute Events
  • In the Media
    • All
    • BU Today
    • Global Media
    • Local Media
    • National Media
    • Op-Ed
    • The Brink
    Newton Grandmother Scammed out of $20,000, Used Bitcoing ATMs to Send Money

    Which is better – a real or a fake Christmas tree?

    How AI Chat Search Could Disrupt Online Advertising

    Spotify CEO cites “expensive” capital as factor in layoffs. What does that mean?

    The Danger of Racial Colorblindness 

    The Danger of Racial Colorblindness 

    EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

    EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

    Can we count on carbon capture to abate climate change?

    Can we count on carbon capture to abate climate change?

    The Cybertruck Must Be Huge—or It Will Dig Tesla’s Grave

    The Cybertruck Must Be Huge—or It Will Dig Tesla’s Grave

    Can Important Unions Collapse and Disappear?

    Can Important Unions Collapse and Disappear?

    The Right Amount of Cards, Cash and ID to Carry in Your Wallet

    Why Is Everyone So Unhappy at Work Right Now?

    Black Friday is almost here. What to know about the holiday sales event’s history and evolution

    Black Friday is almost here. What to know about the holiday sales event’s history and evolution

    Trending Tags

    • Publications
      • All
      • Books
      • Harvard Business Review
      • Journals
      • Sloan Management Review
      How GenAI Could Accelerate Employee Learning and Development

      How GenAI Could Accelerate Employee Learning and Development

      AI Adoption in U.S. Health Care Won’t Be Easy 

      AI Adoption in U.S. Health Care Won’t Be Easy 

      Where Should Your Company Start with GenAI? 

      Where Should Your Company Start with GenAI? 

      How Retailers Can Capitalize on the “Refund Effect”

      How Retailers Can Capitalize on the “Refund Effect”

      Should Companies Refrain From Making Political Statements?

      Should Companies Refrain From Making Political Statements?

      Make It Safe for Employees to Speak Up – Especially in Risky Times

      Make It Safe for Employees to Speak Up – Especially in Risky Times

      Will Generative AI Create a New Era of Search Competition?

      Will Generative AI Create a New Era of Search Competition?

      A Better Approach to Customer-Centric Messaging and Engagement

      A Better Approach to Customer-Centric Messaging and Engagement

      How Coworking Spaces Impact Employee Well-Being

      How Coworking Spaces Impact Employee Well-Being

      Trending Tags

      Insights@Questrom
      • Our Insights
        • All
        • Business Challenges
        • Business Education
        • Business Functions
        Oh, Christmas tree: The economics of the US holiday tree industry

        Oh, Christmas tree: The economics of the US holiday tree industry

        How AI Chat Search Could Disrupt Online Advertising

        Spotify CEO cites “expensive” capital as factor in layoffs. What does that mean?

        EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

        EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

        Can Important Unions Collapse and Disappear?

        Can Important Unions Collapse and Disappear?

        The Right Amount of Cards, Cash and ID to Carry in Your Wallet

        Why Is Everyone So Unhappy at Work Right Now?

        Scrapping the state’s liquor license law makes economic sense

        Scrapping the state’s liquor license law makes economic sense

        Airlines are frustrating travelers by changing frequent flyer program rules – here’s why they keep doing it

        Airlines are frustrating travelers by changing frequent flyer program rules – here’s why they keep doing it

        Redirecting Innovation: Can We? Should We?

        Redirecting Innovation: Can We? Should We?

      • Videos & Podcast
        • All
        • Podcast
        • Videos
        S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

        Questrom $50K Case Competition: In the Trenches of Sustainability with Casella

        S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

        The Optimistic Pessimist

        Shein & Forever 21 Strike a Deal

        Shein & Forever 21 Strike a Deal

        S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

        Questrom and BU Means Innovation and Entreprenuership

        A new travel nightmare: New passport delays lasting 13 weeks

        A new travel nightmare: New passport delays lasting 13 weeks

        Leadership Communications

        Leadership Communications

        Demotivating Effects of Relative Performance Feedback on Middle-Ranked Workers’ Performance

        Demotivating Effects of Relative Performance Feedback on Middle-Ranked Workers’ Performance

        S1:E1 CVS Paying the “Pink Tax” on Certain Products and the Evolution of the Electric Vehicle Industry

        AI: What is it and how will it impact business?

        Is Creativity in Advertising Dead in the age of AI?

        Is Creativity in Advertising Dead in the age of AI?

      • Insights Events
        • Events
        • Insights Live
        • Questrom Institute Events
      • In the Media
        • All
        • BU Today
        • Global Media
        • Local Media
        • National Media
        • Op-Ed
        • The Brink
        Newton Grandmother Scammed out of $20,000, Used Bitcoing ATMs to Send Money

        Which is better – a real or a fake Christmas tree?

        How AI Chat Search Could Disrupt Online Advertising

        Spotify CEO cites “expensive” capital as factor in layoffs. What does that mean?

        The Danger of Racial Colorblindness 

        The Danger of Racial Colorblindness 

        EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

        EXPERT: IN-PERSON WORK ALONE WON’T FIX LONELINESS

        Can we count on carbon capture to abate climate change?

        Can we count on carbon capture to abate climate change?

        The Cybertruck Must Be Huge—or It Will Dig Tesla’s Grave

        The Cybertruck Must Be Huge—or It Will Dig Tesla’s Grave

        Can Important Unions Collapse and Disappear?

        Can Important Unions Collapse and Disappear?

        The Right Amount of Cards, Cash and ID to Carry in Your Wallet

        Why Is Everyone So Unhappy at Work Right Now?

        Black Friday is almost here. What to know about the holiday sales event’s history and evolution

        Black Friday is almost here. What to know about the holiday sales event’s history and evolution

        Trending Tags

        • Publications
          • All
          • Books
          • Harvard Business Review
          • Journals
          • Sloan Management Review
          How GenAI Could Accelerate Employee Learning and Development

          How GenAI Could Accelerate Employee Learning and Development

          AI Adoption in U.S. Health Care Won’t Be Easy 

          AI Adoption in U.S. Health Care Won’t Be Easy 

          Where Should Your Company Start with GenAI? 

          Where Should Your Company Start with GenAI? 

          How Retailers Can Capitalize on the “Refund Effect”

          How Retailers Can Capitalize on the “Refund Effect”

          Should Companies Refrain From Making Political Statements?

          Should Companies Refrain From Making Political Statements?

          Make It Safe for Employees to Speak Up – Especially in Risky Times

          Make It Safe for Employees to Speak Up – Especially in Risky Times

          Will Generative AI Create a New Era of Search Competition?

          Will Generative AI Create a New Era of Search Competition?

          A Better Approach to Customer-Centric Messaging and Engagement

          A Better Approach to Customer-Centric Messaging and Engagement

          How Coworking Spaces Impact Employee Well-Being

          How Coworking Spaces Impact Employee Well-Being

          Trending Tags

          Insights@Questrom
          Home Feature

          Larry Fink Asked to Step Down by Bluebell (London) – He Shouldn’t

          Dave EpsteinbyDave Epstein
          December 15, 2022
          in Opinion, Social Impact
          52
          0
          Larry Fink Asked to Step Down by Bluebell (London) – He Shouldn’t

          WORLD ECONOMIC FORUM / Photo Moritz Hager

          Share on FacebookShare on TwitterShare on LinkedIn

          Larry Fink (BlackRock), Marc Benioff (Salesforce), and others claim that good stakeholder policy can be good for shareholder returns.  They point to changing shareholder sentiment, ESG requirements by the SEC, changing consumer interest, and the long-term viability of companies.  In their calculation, better shareholder returns, in the long run, will be delivered with some focus on CSR and ESG.  Their interest is long-term, sustainable profitability and viability of the corporations they are entrusted to run. 

          Bluebell Capital Partners doesn’t like that.  Here we go again, stakeholder vs. shareholder capitalism.  The Friedman doctrine is clear that we as business leaders should focus our efforts solely on profit regardless of the impact on other stakeholders like our employees, suppliers, and our community.  It goes on to make the argument that the shareholders can take care of the social problems with the profits returned to them, but in the priorities that they each see fit, and not imposed on them by the management of the company. 

          So Bluebell, as with most investment advisories, are focused on one thing only; returns they can show to their clients.  They are measured by returns because of ratings and rankings. They promote their “active” investor style as their value-add and sell to funds and advisors that look for the highest returns for their respective clients in turn.  There is a large distance between the actual stock and the final (last in line) beneficiary of those returns. 

          Since they are primarily brokers, and selling to brokers or advisors, they don’t really care about the long term of any company, and hence of their employees or community.  Indeed, if one company starts floundering for any reason, they can liquidate that position and go on to the next promising firm, or in their case, the next firm they can reconstruct to squeeze out more profits.  If they see that a company is spending money on doing good, or being responsible, they see it as a short-term cost, and not a long-term benefit.  So, they can actively make it more profitable now, the long-term viability is of no consequence.  Their calculation is that if these companies they invest in don’t fare well later, no problem They are ready, and already working on the next one they can mine. 

          This is not too different to the mindset of the arbitrage trader.  Look for a quick buck from some inefficiency in the market in financial terms only. Bluebell actively makes it more efficient, just like that trader does that by buying undervalued stocks and raising the price to squeeze out the inefficiencies, then selling for a profit.  Arbitrage is generally healthy for a fair market, but in Bluebell’s case, they are actively hurting the other stakeholders, including the society and environment in which those companies operate.

          You might say, “Good! This is what capital markets are supposed to do.” Capitalism is based on the belief that we act in our own interest which allows competitive pricing and free competition.  We capitalists believe that the best society is the result.  So, it comes down to what is “our own interest.” If we interpret that to mean that we are doing this for the benefit of a stable, sustainable, society, then neither the intent of capitalism nor the plight of the community becomes compromised. 

          Are we willing to build our wealth for only for a few at the expense of the others?  We all want to do better but few of us want to actively take it from our lower income neighbors or from our future generation.  Rising stock prices don’t raise all boats.  Fifty percent of us have no exposure to the stock markets, while most who do, have less than 10% of their wealth invested through 401k’s. And future generations who depend on a stable income from sustainable companies and who depend on the global environment don’t have a seat at the table unless we stand for them.

          Larry Fink’s definition of “in our own interest” provides us as shareholders with the best return.

          He needs to stay.

          Tags: CapitalismCorporate LeadershipDave EpsteinESG InvestingOpinionShareholderStakeholder
          Dave Epstein

          Dave Epstein

          Dave is the Executive Director of the Susilo Institute for Ethics in a Global Economy and a Professor of Practice at Boston University’s Questrom School of Business. Dave is involved in promoting ethical, environmental and social awareness and actions in relation to business, engineering, education, the environment and political arenas. Along with teaching ethics at Boston University, he has taught ethics in his finance and entrepreneurship classes at the University of San Francisco, University of California, Berkeley, Menlo College and several other universities. Recently, Dave completed a year at Stanford University as a Distinguished Careers Institute Fellow.

          Related Insights

          Google at 25: AI’s Promise and Perils for Search
          Feature

          Google at 25: AI’s Promise and Perils for Search

          October 16, 2023
          A Risk Management Nightmare at Silicon Valley Bank
          Global Media

          The war in Israel is already an issue inside workplaces. Here’s how leaders can talk about it with employees

          October 10, 2023
          “Apologies for the confusion. I’ve made a mistake…”
          Artificial Intelligence in Business

          “Apologies for the confusion. I’ve made a mistake…”

          July 12, 2023
          Ownership in AI: Who is responsible for the benefits and downsides of AI’s output?
          Artificial Intelligence in Business

          Ownership in AI: Who is responsible for the benefits and downsides of AI’s output?

          May 14, 2023
          Ethics Professor Raises Key Questions About the Future Use of AI
          Artificial Intelligence in Business

          Ethics Professor Raises Key Questions About the Future Use of AI

          April 27, 2023
          Silicon Valley Bank: Blame and Ethics of the Failure
          Opinion

          Silicon Valley Bank: Blame and Ethics of the Failure

          March 12, 2023

          Upcoming Events

          February 2024
          Feb 26 2024

          Digital Marketing Symposium

          Questrom Executive Dining Rooms
          No event found!

          Get Our Insights Newsletter

          Get Insights straight to your inbox by signing up now.

            Popular Insights

            • The Right Amount of Cards, Cash and ID to Carry in Your Wallet

              Why Is Everyone So Unhappy at Work Right Now?

              15 shares
              Share 6 Tweet 4
            • Silicon Valley Bank: Blame and Ethics of the Failure

              77 shares
              Share 31 Tweet 19
            • Ethical Implications of ChatGPT in the Educational Setting

              142 shares
              Share 57 Tweet 36
            • How much profit do fireworks stands make?

              132 shares
              Share 53 Tweet 33
            • Redirecting Innovation: Can We? Should We?

              9 shares
              Share 4 Tweet 2

            Boston University Questrom School of Business
            595 Commonwealth Avenue
            Boston, MA 02215

            Follow Us

            Newsletter

            © 2023 Trustees of Boston University

            • About Us
            • Digital Business Institute
            • Human Resource Policy Institute
            • Susilo Institute for Ethics in the Global Economy
            Generic selectors
            Exact matches only
            Search in title
            Search in content
            Post Type Selectors
            • Business Challenges
              • Business Policy & Markets
              • Digital Business
              • Diversity, Equity & Inclusion
              • Entrepreneurship & Innovation
              • Future of Work
              • Health, Biopharma, & Health-Tech
              • Risk
              • Social Impact
            • Business Functions
              • Corporate Strategy
              • Finance & Accounting
              • Innovation
              • Leadership & Management
              • Marketing
              • Operations
              • Technology
            • Publications
              • Journals
              • Harvard Business Review
              • Sloan Management Review
            • Insights Events
              • All Events
              • Insights Live
              • Questrom Institute Events
            • Videos & Podcast
              • Videos
              • Insights@Questrom Podcast
              • Podcast
            • Voices in the Media
            • Our Experts

            © 2023 Trustees of Boston University

            Welcome Back!

            Sign In with Linked In
            OR

            Login to your account below

            Forgotten Password?

            Retrieve your password

            Please enter your username or email address to reset your password.

            Log In

            Warning: Undefined array key "fcb_field_mode" in /www/questrominsights_205/public/wp-content/plugins/floating-contact/floating-contact.php on line 184

            Add New Playlist

            -
            00:00
            00:00

            Queue

            Update Required Flash plugin
            -
            00:00
            00:00