Society is demanding that companies, both public and private, serve a social purpose. To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.” –Larry Fink, CEO, $6 Trillion BlackRock investment manager in his 2018 advisory letter
Mr. Fink’s extraordinary, yet seemingly common sense conclusion is that we need to consider caring not only for shareholders but also for stakeholders, especially employees. But is that a likely shift?
In 1986 colleagues Barney Olmsted and Suzanne Smith asked me to join them at New Ways to Work, the original flex think tank, in a national campaign to promote “equitable flexibility.” It was one part response to the promising emergence of Job Sharing, Part-time, Telecommuting – and possibly Phased Retirement – as scheduling flexibility in a range of corporations steeped in industrial habits.
And it was another part defense against the growing popularity of the “contingent workforce.” This strategy of creating a ring of benefit-less part-time, temporary and contract workers surrounding a core of “regular employees” offered companies staffing flexibility – but it was flexibility at the expense of employees. (The DNA of these practices seems emergent on steroids in today’s “Gig economy.”)
