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Join Conservative Leaders Opposing Larry Fink’s $7 Trillion Plan To Push Corporate America Even Further Left

Larry Fink Climate Change
In our article, “Meet Your New Master: Blackrock’s Larry Fink” we explained how BlackRock, Inc., CEO Larry Fink, using the fund’s estimated $7 trillion under management, has repeatedly placed the interests of America – and, for that matter, those of his clients – second to his own agendas and interests.

The most worrying of the latter are his sustained, concerted and personally lucrative efforts to promote investment in the Red China. They have, over time, had the effect of enriching and enabling the Chinese Communist Party (CCP), its corporate fronts and the malevolent activities in which they have long engaged – to the grave detriment of this country, its security, and values.

As we pointed out, Larry Fink is certainly no cultural or economic conservative – or economic nationalist, like Donald Trump.

Now, 79 conservative leaders have posted an open letter to Mr. Fink, opposing his stated intention of using BlackRock’s financial clout to promote Leftwing causes and achieve social and cultural changes that are entirely unmoored from the interests of corporate shareholders.

You can add your name to the list of those opposed to putting the interests of Red China and Leftwing social engineering ahead of shareholder value by going to LarryFink.com and signing the letter.

Mr. Lawrence Fink, Chief Executive Officer
BlackRock, Inc.
Park Avenue Plaza
55 East 52nd Street
New York, NY 10055-0003

Dear Mr. Fink,

As the nation stands at the edge of an economic precipice and stares into it bleakly, you and your firm, the largest asset management company in the world, play an important role in calming fears, easing worries, and promising a return to normalcy.  This role is exaggerated, in scope and magnitude, by the faith that the Federal Reserve has placed in you to help guide and manage its efforts to alleviate the current stress on the financial system.

In light of all of this, we ask that you reconsider your controversial annual letter from January 14th to the world’s largest investors that BlackRock will operate under a “stakeholder” model rather than the well-established “shareholder” primacy model. While we had concerns when this was first announced, the current pandemic has created a health crisis that is in turn creating an unexpected economic crisis.

This economic crisis makes it more important than ever that companies like BlackRock focus on helping our nation’s economy recover. BlackRock and others must not add additional hurdles to recovery by supporting unnecessary and harmful environmental, social, and governance (ESG) shareholder proposals.

As an asset manager and a publicly traded company, your job is to act as a steward of investors’ capital. By opting to enter into a public market, BlackRock received the benefit of outside investment funds with which to operate and grow. However, the bargain of that benefit is that you must act in good faith and with a fiduciary responsibility to maximize returns for those investors.

Because of your experience and position, your actions influence not only the financial future of millions of Americans but also actions taken by other companies.  In light of your influence, we are especially concerned that your support for some ESG shareholder proposals and investor initiatives brings political interests into decisions that should be guided by shareholder interests.  Shareholders and society at large benefit when companies are guided by values such as producing quality products and services, having integrity in dealing with customers and vendors, and developing the talents and skills of employees.  But when a company’s values become politicized, the interests of the diverse group of shareholders and customers are overshadowed by the narrow interests of activist groups pushing a political agenda.

Most ESG shareholder proposals are sponsored by activist groups that abuse the proxy process to achieve social and cultural changes that are entirely unmoored from the interests of corporate shareholders. Environmental nonprofits, labor unions, left-leaning pension funds, ESG-focused asset managers, and left-wing activists are unconcerned with corporate performance. Their goals are societal and political.

Furthermore, these ESG proposals will add an extra-regulatory cost on these companies requiring them to spend their shareholder capital. This may harm everyday Americans who are invested in these companies through pension funds and retirement plans. While this won’t affect folks in your income bracket, this may be the difference between affording medication, being able to retire, or supporting a family member’s education for many Americans.

There is a financial risk to this tack as well. The Wall Street Journal recently reported that “[p]erformance of BlackRock’s own iShares range of ESG funds shows that ESG is no guarantee of gold-plated returns. Its two oldest in the U.S., set up in 2005 and 2006 and now tracking the MSCI USA ESG Select index and the MSCI KLD 400 Social index, have both lagged behind iShares’ S&P 500 fund.”

And while publicly traded companies operate under a legal fiduciary duty to their investors, this is also a moral imperative. Free market capitalism has lifted more people out of poverty than any economic system in world history. That’s because, at its simplest level, capitalism operates under the basic rule that all exchanges are voluntary. Therefore, to achieve wealth and create growth in a capitalist system, one must appeal to the self-interest of others.

At this moment especially, all of us — including BlackRock — must be focused on the nation’s economic recovery. Investors, many of whom are terrified that their retirement funds have been lost or are at risk, need to be assured that managers of their assets are focused on those facets of business performance that are likely to produce a sustained return on investment and a return to financial normalcy.  Extraneous political considerations serve only to sow confusion and exacerbate instability, when instability can least be tolerated.  In unsettled environments such as this, true “sustainability” is demonstrated by robustness and resilience, not by highly politicized trends and fads.

It is a major concern that your statements run counter to this basic and well-established model.  During the best of times, the purpose of any business is to return a profit for shareholders by providing goods and services that consumers want and need.  But especially during times of grave threat to the economic health of the nation, that purpose — and not a political agenda — should be top of mind for businesses and for investors.

 SIGNATURES (Affiliations for identification only):

 Justin Danhof, General Counsel, National Center for Public Policy Research

Bill Meierling, Executive Director, Shareholder Equity Alliance

Stephen R. Soukup, Publisher/Vice President, The Political Forum

Steve Moore, Founder, Committee to Unleash Prosperity

Edwin Meese III, Former Attorney General of the United States

David Brat, Dean, School of Business, Liberty University

Ken Eldred, Investor, Living Stones Foundation

Foster Friess, Founder, Foster's Outriders

Kevin D. Freeman, CFA, Founder, NSIC Institute

Patrick Moore, PhD, President, Ecosense Environmental Inc.

Keith E. Sirois, President and Chief Executive Officer, Capital Management HPP, Inc.

Rebecca Hagelin, CEO, United in Purpose

David A. Ridenour, President, National Center for Public Policy Research

Charlie Kirk, Founder and Executive Director, Turning Point USA

David L. Black, Ph.D., Founder and CEO, 2ndVote

Morton Blackwell, President, The Leadership Institute

Jenny Beth Martin, Honorary Chairman, Tea Party Patriots Action

David McIntosh, President, Club for Growth

Seth Dillon, CEO, The Babylon Bee

Brian Glicklich, CEO, Digital Strategies

LTC Allen B. West (USA Ret.), Fmr. Member, U.S. House of Representatives

Kent Lassman, President & CEO, Competitive Enterprise Institute

Charlie Copeland, President, Intercollegiate Studies Institute

Peter Schweizer, President, Government Accountability Institute

Father Robert A. Sirico, President and Co-Founder, The Acton Institute

Adam Brandon, President, FreedomWorks

Penny Young Nance, CEO and President, Concerned Women for America

Bob McEwen, Fmr. Member, Ohio, U.S. House of Representatives

Richard A. Viguerie, Chairman, ConservativeHQ.com

Bishop E.W. Jackson, President, STAND Foundation, Inc.

Ed Corrigan, President, Conservative Partnership Institute

Scott Walter, President, Capital Research Center

Rabbi Aryeh Spero, President, Caucus for America

Mark Lewis Melcher, President, The Political Forum

Bill Walton, President, Council for National Policy

J. Christian Adams, President, Public Interest Legal Foundation

Colin A. Hanna, President, Let Freedom Ring

Eunie Smith, President, Eagle Forum

Richard Manning, President, Americans for Limited Government

Everett Piper, President Emeritus, Oklahoma Wesleyan University

Lynda McLaughlin, CEO, M3 Media Management

Tim Huelskamp, Ph.D., Fmr. Member, U.S. House of Representatives

Ginni Thomas, President, Liberty Consulting

John McLaughlin, CEO, McLaughlin & Associates

Lt. General William G. Boykin (Ret.), Executive Vice President, Family Research Council

Jake Hoffman, President & CEO, Rally Forge

Dr. Tim Daughtry, Author, Daughtry & Company

Rod D. Martin, Founder & CEO, The Martin Organization, Inc.

Hon. J. Kenneth Blackwell, former Treasurer, State of Ohio

Daniel Greenfield, Shillman Journalism Fellow, David Horowitz Freedom Center

Trevor Loudon, President, Liberty Trail Corporation

David Bozell, President, For America

Horace Cooper, Co-Chairman, Project 21

John Graves, President, Vision America Action

Kevin D. Roberts, Ph.D., Executive Director, Texas Public Policy Foundation

Haley E. Martin, President, The Martin Foundation

David Kupelian, Vice President and Managing Editor, World Net Daily

Jim Ross Lightfoot, Fmr. Member, U.S. House of Representatives, Lightfoot Strategies

Daniel Grant, President & CEO, 2nd Vote Value Investments, Inc.

David A. Clarke Jr., Retired Sheriff Milwaukee Co. Wisconsin, President America's Sheriff LLC

Eileen J. O’Connor, Founder, Law Office of Hon. Eileen J. O’Connor PLLC

Scott Shepard, Coordinator, Free Enterprise Project, National Center for Public Policy Research

Sherri R. Martin, Executive Vice President, The Martin Organization, Inc.

Sheryl Kaufman, Corporate Chief Economist, Retired, Phillips Petroleum Company

George K. Rasley Jr., Managing Editor, ConservativeHQ.com

Jim Simpson, Author, Journalist, Candidate, U.S. Congress

Becky Gerritson, Executive Director, Eagle Forum of Alabama

Stella Morabito, Author

Iain Murray, Vice President, Competitive Enterprise Institute

Doreen Denny, Vice President of Government Relations, Concerned Women for America

Guillermo J. Aragon, Chief Financial Officer, Martin Imaging, Inc.

Christina Murphy Lusk, J.D., Deputy General Counsel, Campaign for the American Future

Sandy Rios, Director of Governmental Affairs, American Family Association

Kelly Monroe Kullberg, Advisor, American Association of Evangelicals (AAE)

Nicholas W. Carper CFA, Principal (Retired), Mitchell, Sinkler & Starr

Richard Morrison, Research Fellow, Competitive Enterprise Institute

Scott Thomas Parkinson, Vice President of Government Affairs, Club for Growth

David W. Almasi, Vice President, National Center for Public Policy Research

Billie Tucker, CEO, CEO Service Bureau

CC: The Honorable Jerome Powell, Chairman
Board of Governors of the Federal Reserve System
20th Street & Constitution Avenue, NW
Washington, D.C. 20551

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