BlackRock, the planet’s largest investor, has sounded a bold and clarion call for companies to contribute to society. But for its vision to benefit shareholders and communities everywhere, BlackRock must add one essential step.

“To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society,” BlackRock’s chairman and CEO, Laurence D Fink, recently wrote to business leaders. What Mr Fink leaves out is that a business can’t begin to evaluate its social impact if it doesn’t carefully address its spending to influence political elections and the consequences.

As the country approaches a white-hot midterm election with control of Congress, state legislatures and governorships at stake, secret money – much of it from public companies, funneled through hidden or hard-to-trace channels – is flooding our electoral process.

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Make no mistake about the vast power of US companies to set the policy agenda in states and Washington. Representative Chris Collins was recently quoted saying about special interests and the Republican tax reform proposal under debate: “My donors are basically saying, ‘Get it done or don’t ever call me again.’”

Given an increased cash flow for companies resulting from that new tax law and the fiery political divisions rampant in America, why is it so critical for institutional and widely diversified investors such as BlackRock to promote transparency as a market safeguard?

Mr Fink’s declaration is timely. Yet it’s fundamentally incomplete.

When a company bankrolls politicians secretly and without accountability, the ensuing backroom deals distort our economy as well as companies. And a company manager who unilaterally makes a political investment from a corporate treasury shirks responsibility to shareholders to act on their behalf.

Shareholders left in the dark will lack the knowledge needed to raise objections or reconsider their investment, potentially averting risk from a public boycott or backlash over a controversial political donation or one that may seem out of whack with a company’s core values. The latter has occurred recently when some companies’ actual political expenditures have collided with their positions on diversity, gender equity and climate change.

The public, meanwhile, doesn’t know who’s helping to fund elected decision-makers. The supreme court justice Anthony Kennedy summed up both these principles when, in writing Citizens United eight years ago, he underscored the importance of prompt corporate political disclosure:

Shareholders can determine whether their corporation’s political speech advances the corporation’s interest in making profits, and citizens can see whether elected officials are ‘in the pocket’ of so-called moneyed interests.

Unfortunately, Kennedy’s promise of disclosure is unfulfilled, at the same time that the Citizens United case’s lifting of key restrictions has opened the floodgates to deluges of anonymously sourced “dark money” in state and federal elections.

And today, companies are under greater pressure to take sides or show they are socially responsible, amid President Donald Trump’s shattering of established norms and a hypercharged political climate fueled in part by social media and a 24-hour news cycle.

Fortunately, companies are heeding Mr Fink’s advice and committing to a broader, more societal outlook. Corporate managers are making it clear that sexism and racism will not be tolerated in their companies. A growing number of companies support efforts to address climate change despite the Trump administration’s pullback.

In this climate, Mr Fink’s declaration is timely. Yet it’s fundamentally incomplete. His “ask” of US CEOs neglects an integral element for companies fulfilling a social purpose. It’s not an hour too late for Mr Fink to tweet out a postscript urging companies to adopt transparency and board oversight of political spending. It is also time for BlackRock itself to put Mr Fink’s rhetoric into practice on the complementary issue of political transparency and accountability by supporting shareholder resolutions urging companies to adopt those policies.

Pursuant to a shareholder campaign we have led, more and more leading US companies are voluntarily making these mainstream practices. These companies seek to mitigate risk for shareholders, bring sunlight and accountability to our democracy and, as importantly, make a positive contribution to society.