Fink told executives that 2019 poses the threat of market uncertainty and deteriorating confidence, with some warning "increased risk of a cyclical downturn", therefore a "commitment to a long-term approach is more important than ever".

The BlackRock CEO said firms must embrace purpose in their business models and corporate strategy above the pursuit of profits.

He explained: "Purpose is not a mere tagline or marketing campaign; it is a company's fundamental reason for being - what it does every day to create value for its stakeholders.  

"Purpose is not the sole pursuit of profits but the animating force for achieving them. 

"Purpose unifies management, employees, and communities. It drives ethical behaviour and creates an essential check on actions that go against the best interests of stakeholders.

"Purpose guides culture, provides a framework for consistent decision-making, and, ultimately, helps sustain long-term financial returns for the shareholders of your company."

Fink added that an "increasingly fragile" global landscape has led to society "increasingly looking to companies, both public and private, to address pressing social and economic issues".

He said: "Companies cannot solve every issue of public importance, but there are many - from retirement to infrastructure to preparing workers for the jobs of the future - that cannot be solved without corporate leadership."

"One thing... is certain: the world needs your leadership."

ESG and 'difficult decisions'

Fink and BlackRock had been the subject of a hoax 'fake letter' on Wednesday, which led several news outlets to erroneously reporting that the CEO had used his annual letter to apply pressure on firms to improve their environmental, social, and governance (ESG) and climate standards.

In reality, Fink's real letter made little mention of ESG or climate-related issues, except in reference to changing investor trends driven by the millennial generation.  

He said: "As wealth shifts and investing preferences change, environmental, social and governance issues will be increasingly material to corporate valuations.

"This is one of the reasons why BlackRock devotes considerable resources to improving the data and analytics for measuring these factors, integrates them across our entire investment platform, and engages with the companies in which we invest on behalf of our clients to better understand your approach to them."

Fink also noted that BlackRock's investment stewardship engagement priorities for this year include "environmental risks and opportunities", as well as factors like diversity, governance, corporate strategy, and capital allocation.

Elsewhere, Fink noted the recent revelations about job cuts across his business as an example of "difficult decisions" firms sometimes have to make "in the service of larger strategic objectives".

He said: "BlackRock itself, after several years of growing our workforce by seven per cent annually, recently made reductions in order to enable reinvestment in talent and growth over the long term.

"Clarity of purpose helps companies more effectively make these strategic pivots in the service of long-run goals."

This article first appeared at BusinessGreen sister title Investment Week