When government fails, 'business has to step up'

Businesses like to devote part of their marketing and public relations budget to promote how they are  giving back to society. We are not just about profits, they try to say. And the message is arguably true, not just propaganda, as far as it goes.

Fink, from BlackRock.com

But we are starting to hear a different kind of message from business people, and it goes like this:

"Around the world, frustration with years of stagnant wages, the effect of technology on jobs, and uncertainty about the future have fueled popular anger, nationalism, and xenophobia. In response, some of the world’s leading democracies have descended into wrenching political dysfunction, which has exacerbated, rather than quelled, this public frustration. Trust in multilateralism and official institutions is crumbling." -- Larry Fink,
(emphasis mine)

Business people will have to fill the gap left by polarized and paralyzed national governments: this is the message of Larry Fink, CEO of BlackRock, the world's largest mutual fund company. Businesses have to show that they have a higher purpose than just making money. And, by the way, it's in your own interest to do so, he says. BlackRock has used its position as a major shareholder of some companies to push for more socially conscious policies.

(More coverage of Fink's letter was in Bloomberg, Forbes, and Reuters, among others.)

Investor sees 'great returns' from new digital media

Vucinic, photo by Ted.com

Many media investors see disaster everywhere they look, as traditional media lose audience, revenues, and relevance.

Sasa Vucinic, co-founder and co-managing director of North Base Media, sees great investment opportunities, especially in developing markets, such as Central Europe, Asia-Pacific, and Latin America.

"We invest in serious digital-only media oriented toward the younger audience that can disrupt their markets. And we think it’s a phenomenal business that will bring great financial returns."

Vucinic, who began his journalism career in Serbia, has been a crusader for media organizations that tell the truth about corrupt, oppressive regimes. I reached him via Skype in South Korea, where he was looking at investment opportunities. I wanted to ask him about social purpose investing, where investors direct their money toward organizations that not only give a financial return but also have a positive impact on society. 

Versión en español

Vucinic said he no longer talks about social impact with investors. "I spent 16 years trying to prove to investors that a media company has a two pronged nature: It is a business that will be sustainable and profitable, if possible, and at the same time it provides an incredibly important role in the society," he told me. "I actually think that if you do not understand that media plays an important role in society, you're not very likely to invest in it anyway."