Written by Richard D. Kocur |
Monday, October 17, 2022
Disney faced pressure from gender equity activists and employees for not doing enough to oppose the bill. Then, after coming out in opposition, Disney faced blowback from parents who believed the company should simply focus on providing family entertainment. On that issue, Disney management spun around more than a rider on the theme park’s iconic Teacup ride. And why? Because of ill-conceived social activism on an issue that was irrelevant to the primary role of the business. Now Blackrock finds itself in a comparable position as a result of a similar activist pursuit.

With the stock market down nearly 20% year-to-date in 2022, investors are paying close attention to the financial performance of their portfolios: seeking to protect 401Ks, looking for safe havens, and trusting that their fiduciary asset managers are making the right decisions with ever-shrinking nest eggs. The last thing any investor would want now is for asset managers to be investing in companies for any reason other than to maximize financial return.
Unfortunately, that is exactly what the world’s largest asset manager, Blackrock Inc., is doing through an emphasis on Environmental, Social, and Governance (ESG) investing. This mode of corporate social activism has placed Blackrock in a difficult position, however, as pressure from both sides of the ESG issue close in on the company. Blackrock has become the latest example of a company experiencing the consequences of corporate social activism.
The movement to emphasize ESG within corporate structures and as corporate objectives first emerged in the early 2000s. ESG-focused investing directs capital to companies with stated goals on issues like climate change and social justice. Financial returns are a secondary concern to those who want to support or pressure companies to commit to ESG standards and enact policies to reach those standards.
With approximately $10 trillion in assets under management, Blackrock wields substantial power over where their assets, and by extension the assets of anyone invested in Blackrock, are placed. An August 16 editorial in the Wall Street Journal noted how Blackrock pressured companies to “avoid investing in fossil-fuel assets … and reduce emissions to achieve net zero by 2050.” In essence, putting pressure on the companies in which Blackrock invests to adopt ESG standards. If Blackrock’s blackmail is resisted, proxy shares are voted against management. This approach puts activism above shareholders’ returns. But Blackrock is beginning to see a backlash.
In late summer 2022, attorneys general from 19 Republican states sent a letter to Blackrock CEO Larry Fink seeking answers about potential conflicts between the firm’s ESG investing practices and his company’s fiduciary duty. In addition, states such as Texas and Louisiana have begun to bar state investment in any Blackrock fund that pushes ESG standards. With billions in state pension dollars and the investments of individual citizens at stake, the AGs and state comptrollers are calling Blackrock on the carpet.
In addition to this political reaction, market forces have also stepped into the ESG fight. A new investment alternative to ESG funds was recently launched by Strive Asset Management. Strive created a fund that mirrors Blackrock’s U.S. Energy Index Fund (IYE) but with a commitment to pursue non-ESG policies.
If pressure from those in opposition to ESG was not enough, Blackrock is also facing pushback from ESG advocates. In late September 2022, officials responsible for the public pension funds in New York City sent a letter to Fink pressing Blackrock to recommit to achieving net-zero emissions across its investment portfolio and to vote more in line with climate-related shareholder initiatives. Blackrock manages approximately $43 billion in investments for three New York City pension funds, according to a September 2022 article in the Wall Street Journal.
Blackrock could take a lesson from the investment adage, “past performance is no guarantee of future results.” In the case of corporate social activism, past performance is a guarantee of future results. One only needs to look back to the mess in which the Walt Disney Corporation found itself because of its stance on Florida’s Parental Rights bill.
First, Disney faced pressure from gender equity activists and employees for not doing enough to oppose the bill. Then, after coming out in opposition, Disney faced blowback from parents who believed the company should simply focus on providing family entertainment. On that issue, Disney management spun around more than a rider on the theme park’s iconic Teacup ride. And why? Because of ill-conceived social activism on an issue that was irrelevant to the primary role of the business. Now Blackrock finds itself in a comparable position as a result of a similar activist pursuit.
Pressured from both sides of the ESG issue, they have now put themselves between a Blackrock and a hard place.
The author thanks Alex Heisey for his help in gathering research for this article.
Dr. Richard D. Kocur is an assistant professor of business at Grove City College. This article is used with permission.
Related Posts:

Do you find it accidental or coincidental that immediately after Jesus, Paul, and Peter all instruct us to be the kinds of people who refuse to “fight fire with fire” or “punch back twice as hard” their very next words are about persecution and suffering? This is not an accident. Far from being “unsuited” for our times, the cultural world into which God gave all of these commands was far worse, far more hostile, and far more polarized than our own. There was no asterisk on these commands, no “do this unless you live in a hostile world.” The hostile world was already baked in. And you know what? This was not a recipe for being dominated by the world. It was a recipe for overcoming the world. Christianity conquered the Roman Empire with this ethic.

Almost a decade ago I spoke at a conference in Portland, Oregon. I recently came across my prepared remarks, which honestly I’d completely forgotten. I’m going to borrow from it liberally for this newsletter, since the conference is long-forgotten and my remarks were never published. Consider that I said the following in 2013:
We live in a very challenging cultural environment. Have things ever seemed as polarized as they are right now? Right vs. Left, Gay vs. Straight, Tolerance vs. Bigotry, and we could go on all night rehearsing the divisions! During the 90s I remember pundits and social observers confidently declaring that the so-called “culture wars” were over. It would be an age of peace and economic prosperity, with no more conflict over thorny moral questions like abortion, euthanasia, or homosexuality. If only! I trust I do not need to tell people living in Portland, Oregon, that these sorts of cultural conflicts are alive and well.
Heh. What did I know? Have things ever seemed as polarized? We hadn’t seen anything at all yet, had we? That was all pre-Woke Mobs, pre-Trump, and pre-Portland-being-a-graffiti-painted-post-apocalyptic wasteland. I went on to describe our shifting culture and predicted that the LGBTQ agenda—actually I don’t think there was a Q on it back then—would be a major catalyst for increasing hostility toward Christians.
I continued on with this illustration, which I think holds up very well:
Being on the West Coast, I understand that Oregon occasionally gets earthquakes. I’ve personally never experienced one. But what is the first instinct when the ground literally starts to move under your feet? I imagine you reach out and grab for something stable, usually frantically and in a panic. We need to be steadied and balanced. And cultural earthquakes are no different. When things shift and change, when definitions change, cultural mores radically shift, when the old things cannot be taken for granted anymore, we can feel extremely vulnerable. We can feel afraid, alone, helpless, and without resources. Usually the shift feels completely new, something we’ve never experienced before. And we then automatically think that nobody else has ever experienced it before.
And when we think nobody else has experienced it before, nobody else has had to face the hostility we now face, then next step seems clear enough: our forefathers and foremothers are of no help to us. Our “old’ way of engaging culture must be the culprit, not the solution, for the hostility we face. Hence, the current claims that old ways of doing things are “unsuited for the times.”
There is a humorous Sci-Fi cult classic book called The Hitchhiker’s Guide to the Galaxy, by British writer Douglas Adams. In the story, the Hitchhiker’s Guide itself is, in fact, a galactic encyclopedia designed to give vital information to the lonely galactic traveler. And on the cover of that vast resource is a warm, smiley face accompanied by the words: “Don’t Panic!”
It seems to me that as we Christians make our way through an unpredictable, sometimes crazy, sometimes hostile world, we have the ultimate guide: God himself. God speaks. And you know what the number one message of the Bible is for people living in the midst of cultural hostility? Don’t panic. You live in precedented times and you are not alone.
It is the most frequent command in the Bible: “Do not be afraid.”
“Fear not.” Over and over again. God knows that we are prone to fear. And God exhorts us again and again to not fear. This isn’t because God is naïve. He knows that sometimes there is legitimate reason to fear.
Read More
Related Posts:

God intends either discipline or testing by what is suffered, and both produce the good of improved sanctification.[29] We are not allowed to take “natural calamity” out of that package of necessary suffering for the believer. God in His providential care designs the calamity as a blessing in sometimes macabre dress. We are to “consider it all joy . . . when you encounter various trials, knowing that the testing of your faith produces endurance.”[30] Suffering is a foundational aspect of sanctification. 

We must acknowledge that the most troubling problem emerging from any large scale natural disaster is not that people die. That is a real human and emotional issue, but not the most significant one. Hurricanes, tsunamis, earthquakes, fires, tornados or floods do not change the statistics on the number of the human race experiencing death by even one digit. A typhoon in Bangladesh swept away between 300,000 and 500,000 lives in 1970,[1] and the worldwide influenza pandemic of 1918 exterminated between 50,000,000 and 100,000,000,[2] but neither of these catastrophic events changes the grim prognosis that every member of the human race will die. We are dying at a hundred percent rate already.
It is also not the overarching dilemma that natural events destroy what we have made—our homes, buildings, roads, etc. No one should be surprised when a house or building is brought to nothing in a mudslide in view of the fact that God declares that decay will eventually destroy all things anyway.[3] We are promised the cataclysmic destruction of the entire earth as we know it in the future.[4] Some have lost these things earlier than they had hoped they would, but that they would be destroyed should never be in debate with evangelicals. So there is nothing new here either.
Furthermore, it should not be a conundrum to us that many people face an alteration of their existence due to catastrophe. A new order will come to everyone eventually; heaven and a new earth will be experienced by some[5], and hell for others. Death alters everything, as will Christ’s return.
We should also remember that there is no meaningful dissimilarity in the horribleness of death in a natural disaster as opposed to normal times. If it were possible to ask a man in the sanitary environment of a hospital what it is like to breathe his last breath when he is drowning in his own fluid, he would tell you it is every bit as horrific as being drowned in a flood. Because God mercifully allows the body to experience shock in times of fright, many will thankfully have some anesthesia when they die, whether natural or narcotic. But death is still a ravaging enemy wherever and however it is encountered. Some may linger in the hospital room for days before they die, while others under the rubble caused by an earthquake painfully expire from dehydration. A woman may die instantly when a hurricane pushes her house down, while her sister may end her two year struggle with an insidious malignancy with screams. Which is easier?
Everyone will die; everyone will lose whatever they have; everyone will face a completely altered existence; everyone will experience the horror of last moments on earth. We have already bought into all of these as theological verities. So what is so arrestingly unique about a natural disaster? Why do we become poetic and communicative about it? Why do we not hear news commentators saying, “Today an earthquake in India did the normal: It took a few thousand lives, destroyed property, took people to another existence and did it in the typically horrible way. The stock market was up today with heavy volume . . .”
We are alarmed because a natural disaster brings dramatic focus to these universal inevitabilities. It paints them in vivid color right before our faces so that we cannot escape them. We see how impotent we are. Our invincibility evaporates; our vulnerability parades in front of us and mocks us. We watch as people just like us, going about their business, lose everything and die in a moment. It grabs us precisely because it is us we are hearing about. Natural disaster is not about something new happening, or even about something unusual happening, but about something that has always happened and is inescapable for each of us—and more precisely, for me.
All death and destruction comes from the most cataclysmic event of history, the fall of man, and from the resulting just judgment of God.e[6] Our natural world groans under the resultant bondage.e[7] Believers, of all people, should learn to reconcile themselves to this fact. One pastor was reminded by God after the loss by flood of all his awards and letters from important people not to be concerned. Reportedly God said to him, “Don’t worry . . . I was going to burn them anyway.” Whether he heard these words directly or not, the sentiment was true.[8]
The certainty that death, decay, and destruction are going to happen anyway to all of us and to all of our things, however, does not eradicate the internal pain that believers may experience. Even Christ, who said, “Let not your heart be troubled,” was “distressed and troubled,” and “deeply grieved, to the point of death” by the weight of sin placed on Him. With perfect knowledge and absolute trust, He still worked out His peace with the cross on Gethsemane. Granted, His was an infinitely bigger burden than ours, but there is surely a lesson here.
Some of the greatest of saints have also been depressed about losses or disruptions (David, Elijah, Spurgeon, and Martin Lloyd Jones, etc.). Ongoing emotional troubles remind us that disaster of any sort is often an immense trial, spinning off secondary disasters, like hurricanes spin off tornadoes, even among believers. If this is so, we more-average saints must have much aid in understanding and coping with natural disaster when it affects us or those we love dearly. What can help?
When disaster occurs, the mental/emotional state of the believer is directly bound to his spiritual perception. Ultimately, and often immediately, believers can overcome a debilitating freefall into anxiety over what has transpired. It becomes the pastoral job to not only empathize, but to lead believers to have a biblical perspective about disaster and loss as soon as possible—preferably prior to the event occurring. It is concerning this perspective that I wish to direct our attention.
Nature Obeys God
The disciples said of Jesus, “. . . even the winds and the sea obey Him?”[9] This verse is often employed apologetically with skeptics for the purpose of proving that Jesus is actually God. The believing world has almost always asserted, in pacific times, that God controls nature. The farmer prays to God for rain for his dry fields, just as the Christian school teacher requests from God clear skies for the class picnic, because we assume that God has everything to do with it. But does this general, almost presupposed evangelical belief extend far enough when times are more difficult?
As an illustration of how God’s oversight of nature may be addressed, the Second London Baptist Confession clarifies the extent of God’s control in its first and second under “Divine Providence.” It is worth a careful reading:

God who, in infinite power and wisdom, has created all things, upholds, directs, controls and governs them, both animate and inanimate, great and small, by a providence supremely wise and holy, and in accordance with His infallible foreknowledge and the free and immutable decisions of His will. He fulfils the purposes for which He created them, so that His wisdom, power and justice, together with His infinite goodness and mercy, might be praised and glorified. (Job 38:11; Ps. 135:6; Isa. 46:10,11; Matt. 10:29-31; Eph. 1:11; Heb. 1:3)
Nothing happens by chance or outside the sphere of God’s providence. As God is the First Cause of all events, they happen immutably and infallibly according to His foreknowledge and decree, to which they stand related. Yet by His providence God so controls them, that second causes, operating either as fixed laws, or freely or in dependence upon other causes, play their part in bringing them about. (Gen. 8:22; Prov. 16:33; Acts 2:23)[10]

This historic confession has not overstated the biblical principle. The Psalmist speaks convincingly concerning the control of God over natural events:
Whatever the Lord pleases He does, in heaven and in earth, in the seas and in all deep places. He causes the vapors to ascend from the ends of the earth. He makes lightening for the rain; He brings the wind out of His treasuries.[11]
It was God who ordained each of the natural plagues on Egypt, for instance, including turning water to blood, filling the land with frogs, sending hail, and devastating locusts. Even Pharoah recognized this.[12]
Moses stretched out his staff toward the sky, and the Lord sent thunder and hail, and fire ran down to the earth. And the Lord rained hail on the land of Egypt.[13]
Read More

Related Posts:

.kb-row-layout-id223392_4ab238-bd > .kt-row-column-wrap{align-content:start;}:where(.kb-row-layout-id223392_4ab238-bd > .kt-row-column-wrap) > .wp-block-kadence-column{justify-content:start;}.kb-row-layout-id223392_4ab238-bd > .kt-row-column-wrap{column-gap:var(–global-kb-gap-md, 2rem);row-gap:var(–global-kb-gap-md, 2rem);padding-top:var(–global-kb-spacing-sm, 1.5rem);padding-bottom:var(–global-kb-spacing-sm, 1.5rem);grid-template-columns:minmax(0, 1fr);}.kb-row-layout-id223392_4ab238-bd{background-color:#dddddd;}.kb-row-layout-id223392_4ab238-bd > .kt-row-layout-overlay{opacity:0.30;}@media all and (max-width: 1024px){.kb-row-layout-id223392_4ab238-bd > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}@media all and (max-width: 767px){.kb-row-layout-id223392_4ab238-bd > .kt-row-column-wrap{grid-template-columns:minmax(0, 1fr);}}
.kadence-column223392_96a96c-18 > .kt-inside-inner-col,.kadence-column223392_96a96c-18 > .kt-inside-inner-col:before{border-top-left-radius:0px;border-top-right-radius:0px;border-bottom-right-radius:0px;border-bottom-left-radius:0px;}.kadence-column223392_96a96c-18 > .kt-inside-inner-col{column-gap:var(–global-kb-gap-sm, 1rem);}.kadence-column223392_96a96c-18 > .kt-inside-inner-col{flex-direction:column;}.kadence-column223392_96a96c-18 > .kt-inside-inner-col > .aligncenter{width:100%;}.kadence-column223392_96a96c-18 > .kt-inside-inner-col:before{opacity:0.3;}.kadence-column223392_96a96c-18{position:relative;}@media all and (max-width: 1024px){.kadence-column223392_96a96c-18 > .kt-inside-inner-col{flex-direction:column;}}@media all and (max-width: 767px){.kadence-column223392_96a96c-18 > .kt-inside-inner-col{flex-direction:column;}}

Subscribe to Free “Top 10 Stories” Email
Get the top 10 stories from The Aquila Report in your inbox every Tuesday morning.