Skip to main content
  • SHRM
  • Foundation
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
  • Store
  • Sign In
  • Account
    • Account
    • Logout
    • Global
    • India
    • MENA
Executive network
About
Apply Now
  • Membership
  • News & Insights
    News & Insights

    Christine Mixan
    People + Strategy Podcast

    The People + Strategy podcast features thought leaders in HR and insights from the world of work.

    • People + Strategy Journal

      People + Strategy is a quarterly journal that delivers the most current theory, research, and practice in strategic human resource management.

    • Research

      Unlock data, research, and expert thought leadership, accelerating your organization’s growth and success.

    • News

      Members of the SHRM Executive Network enjoy access to expert analysis of data from SHRM Research, commentary on current trends, and insights from recent EN events.

  • Networking & Events
    Networking & Events

    Executive Network Experience at SHRM25
    Executive Network Experience at SHRM25

    This private convening is designed to meet your professional business needs as an HR leader.

    • Visionaries Summit

      When you attend the two-day Visionaries Summit, you’ll leave with data-backed ideas and action plans to implement right away.

    • EN:Insights Forum

      The EN:Insights Forums bring together like-minded leaders to explore the latest research on the business strategies and trends that are driving innovation and organizational success.

    • EN:Assembly

      Your trusted circle of HR peers for thought leadership, collaboration, and support.

Close
  • Membership
  • News & Insights
    back
    News & Insights
    Christine Mixan
    People + Strategy Podcast

    The People + Strategy podcast features thought leaders in HR and insights from the world of work.

    • People + Strategy Journal

      People + Strategy is a quarterly journal that delivers the most current theory, research, and practice in strategic human resource management.

    • Research

      Unlock data, research, and expert thought leadership, accelerating your organization’s growth and success.

    • News

      Members of the SHRM Executive Network enjoy access to expert analysis of data from SHRM Research, commentary on current trends, and insights from recent EN events.

  • Networking & Events
    back
    Networking & Events
    Executive Network Experience at SHRM25
    Executive Network Experience at SHRM25

    This private convening is designed to meet your professional business needs as an HR leader.

    • Visionaries Summit

      When you attend the two-day Visionaries Summit, you’ll leave with data-backed ideas and action plans to implement right away.

    • EN:Insights Forum

      The EN:Insights Forums bring together like-minded leaders to explore the latest research on the business strategies and trends that are driving innovation and organizational success.

    • EN:Assembly

      Your trusted circle of HR peers for thought leadership, collaboration, and support.

About
Apply Now
  • Store
    • Global
    • India
    • MENA
  • SHRM
  • Foundation
  • CEO Circle
  • Enterprise Solutions
  • Linkage Logo
Executive network
Sign In
  • Account
    • Account
    • Logout
Close

  1. Executive News & Insights
  2. People + Strategy Journal
  3. Striking the Balance Between Profits and Purpose
Share
  • Linked In
  • Facebook
  • Twitter
  • Email

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Vivamus convallis sem tellus, vitae egestas felis vestibule ut.


Error message details.

Copy button
Reuse Permissions

Request permission to republish or redistribute SHRM content and materials.


Learn More

Striking the Balance Between Profits and Purpose

From the Met to BlackRock to Harvard: Deborah Winshel discusses her journey to a more balanced approach to ESG.

February 22, 2024

A woman leaning against a wall with her arms crossed.


Deborah Winshel, a senior lecturer at Harvard Business School and former managing director at BlackRock, would ideally like to see those three letters—ESG—eventually disappear. She argues that putting a separate label on a set of expectations that should be firmly embedded in every organization undermines a more holistic, long-term approach to social responsibility. And that separate label has allowed ESG to become the lighting rod that has sparked the "woke capitalism" backlash we're seeing today. Adam Bryant, articles editor of People + Strategy, sat down with Winshel to discuss her experience in the ESG space and where she sees the debate going from here.


People + Strategy: You led both impact investing and social impact for BlackRock for more than six years. What prepared you for those roles, given that these were still relatively new fields?

Deborah Winshel: When I joined BlackRock in 2015, I didn't have direct experience in what was emerging in the industry as sustainable investing or ESG. But I did have experience in thinking about the fact that organizations have more than one bottom line—and multiple responsibilities beyond short-term financial objectives. I first explored that idea when I was the chief financial officer of the Metropolitan Museum of Art. I came to understand that the organization had a double bottom line—that while the Met was deeply committed to its mission, equally it needed to be financially sustainable over the long run to accomplish that mission. The Met had a very experienced board, and it allowed us to reframe the way we operated with a broader lens of balancing mission and financial goals. You can't sustain one without the other, and that requires thinking about different perspectives and constituents at the same time.

There was a similar dual focus when I served as president of the Robin Hood Foundation, a venture philanthropy with a dual lens on creating social impact and a return on investment. Organizations are often challenged to find leaders or stakeholders who understand that balance. They may focus on a social mission and not be quite as attuned to the practicalities and other demands of the organization. Or they rely on a financial perspective, and the other strategic and operating priorities are essentially layered on top, not considered in a more integrated way.


P+S: And so what was your approach to your roles at BlackRock?

Winshel: My role was to create a sustainable impact investing platform. ESG were three increasingly popular letters at the time, although not nearly as recognized as they are today. Early on, when I spoke with clients and at conferences, I often mentioned that ideally those three letters would disappear. I said that because creating an acronym or label around what was considered a new set of expectations for companies was misleading in many ways. It created a segregated way of thinking about issues that for decades were implicitly embedded in many CEOs' visions of their responsibilities.Screen Shot 2023-01-03 at 25112 PM.png

In a way, one could argue that creating this separate approach to ESG undermined a more integrated, holistic and long-term way of thinking about core responsibilities as a leader and as an organization. That's been a lightning rod that has sparked the backlash we're seeing now. ESG—and responsibility to a broad set of stakeholders—has been isolated as an independent, standalone objective no longer embedded in the context of a company's long-term operating health.


P+S: Companies are getting pressured from so many different stakeholders now, often with conflicting demands and expectations.

Winshel: It can be challenging for companies to balance what are often competing priorities. And in difficult economies or challenging markets, objectives that support long-term financial sustainability can take a backseat. But successful companies focus on how best to satisfy their customers, how best to ensure that their employees feel committed and how best to support the communities and environment in which they operate.

The role of the CEO is to be the long-term visionary and to create a sustainable company for years to come. Many companies think deeply about how to make sure they have the right balance among all their stakeholders.

As is frequently raised in these debates, when you have a sharp focus on quarterly earnings, it's difficult to sustain a two-level perspective of worrying about what you're trying to deliver at the end of a quarter and also trying to figure out what makes sense for the company over the next five to 10 years.


P+S: The CEO role has always been difficult, but it feels like leadership has become five to 10 times harder in the last three years.

Winshel: We put CEOs in an almost untenable position as they try to strike a balance. There are investors, such as pension funds, that are in it for the long-term, alongside activist investors who are often focused on a more immediate return. How do you create that balance? ESG has, in some cases, become code for suggesting that the company's leadership is taking its eye off the ball, even changing the goal posts on what performance or responsibility means. I argue, instead, that for a well-managed company, all those considerations are deeply embedded in the strategy and operations.

A number of companies have invested deeply in thinking about how to be more environmentally conscious because it's efficient for their operations. It's just smart business. And when companies can express what they are doing in a way that specifically relates to the advancement and progress and success of their company—rather than something they are promoting in isolation—that's when the debate can settle down. It's about getting back to the fundamental purpose of companies. Why do you exist? It's usually to deliver something to a customer. And if you build your purpose from that, other "ESG" issues will surface, but they're in context. This is about going back to the basics of how you have a smart, efficient, responsible company that generates good long-term returns. 


Employment Law & Compliance
Ethical Practice
Global Mindset

Artificial Intelligence in the Workplace

​An organization run by AI is not a futuristic concept. Such technology is already a part of many workplaces and will continue to shape the labor market and HR. Here's how employers and employees can successfully manage generative AI and other AI-powered systems.



Related Content

Kelly Dobbs Bunting speaks onstage at SHRM24
(opens in a new tab)
News
Why AI+HI Is Essential to Compliance

HR must always include human intelligence and oversight of AI in decision-making in hiring and firing, a legal expert said at SHRM24. She added that HR can ensure compliance by meeting the strictest AI standards, which will be in Colorado’s upcoming AI law.

(opens in a new tab)
News
A 4-Day Workweek? AI-Fueled Efficiencies Could Make It Happen

The proliferation of artificial intelligence in the workplace, and the ensuing expected increase in productivity and efficiency, could help usher in the four-day workweek, some experts predict.

(opens in a new tab)
News
How One Company Uses Digital Tools to Boost Employee Well-Being

Learn how Marsh McLennan successfully boosts staff well-being with digital tools, improving productivity and work satisfaction for more than 20,000 employees.

HR Daily Newsletter

Stay up to date with the latest HR news, trends, and expert advice each business day.

Success title

Success caption

Manage Subscriptions
  • About SHRM
  • Careers at SHRM
  • Press Room
  • Contact SHRM
  • Book a SHRM Executive Speaker
  • Advertise with Us
  • Partner with Us
  • Copyright & Permissions
  • Post a Job
  • Find an HR Job
Follow Us
  • LinkedIn
  • Facebook
  • Twitter
  • Instagram
  • YouTube
  • SHRM Newsletters
  • Ask An Advisor

© 2025 SHRM. All Rights Reserved

SHRM provides content as a service to its readers and members. It does not offer legal advice, and cannot guarantee the accuracy or suitability of its content for a particular purpose. Disclaimer


  1. Privacy Policy

  2. Terms of Use

  3. Accessibility

Join SHRM for Exclusive Access to Member Content

SHRM Members enjoy unlimited access to articles and exclusive member resources.

Already a member?
Free Article
Limit Reached

Get unlimited access to articles and member-exclusive resources.

You've reached the limit of 1 free article this month. Join to access unlimited articles and member-only resources.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join the Executive Network and enjoy unlimited content.

Already a member?
Free Article
Exclusive Executive-Level Content

This content is for the SHRM Executive Network and Executive Content Subscription members only.

You've reached the limit of 1 free article this month. Join and enjoy unlimited access to SHRM Executive Network Content.

Already a member?
Unlock Your Career with SHRM Membership

Please enjoy this free resource! Join SHRM for unlimited access to exclusive articles and tools.

Already a member?

Your membership is almost expired! Renew today for unlimited access to member content.

Renew now

Your membership has expired. Renew today for unlimited access to member content.

Renew Now

Your Executive Network membership is nearing its expiration. Renew now to maintain access.

Renew Now

Your membership has expired. Renew your Executive Network benefits today.

Renew Now