BlackRock’s Larry Fink as well as additional CEOs are “extraordinarily hypocritical” to push companies for more social responsibility, billionaire investor Sam Zell told CNBC on Tuesday.
The brand-new York Times reported Fink will tell business leaders in a letter on Tuesday which their companies need to do more than just make profits. Companies need to contribute to society as well if they want to receive support, Fink argues in a draft letter obtained by the Times.
Fink’s BlackRock manages more than $6 trillion in investments through 401(k) plans, exchange-traded funds as well as mutual funds.
Fink as well as seven partners founded BlackRock within the late 1980s, as well as the firm has grown to the largest asset manager within the globe.
“They talk about the fact which they’re in effect going to do exactly what market does,” said Zell, the founder as well as chairman of property specialist Equity Group Investments. “as well as then they put up public policy statements which suggest which they’re going to advocate the market doing things additional than what happens every day.”
“Either they’re a passive fund which follows the market or they’re a leader which’s setting the tone,” Zell said in an interview on “Squawk Box,” adding BlackRock can’t hold the idea both ways.
Zell questioned whether America is usually ready to have BlackRock “in charge of the NYSE,” saying “I didn’t know Larry Fink had been made God.”
Zell made his fortune within the real estate business over a decadeslong career. He describes himself as a social liberal as well as a fiscal conservative. He’s also an active philanthropist which has a focus on entrepreneurial education.
He chairs several NYSE-listed companies, including three real estate investment trusts.
BlackRock did not immediately respond to CNBC’s request for comment.