Eco-Friendly Business Tips

Green Companies Get More Done

Green Companies Get More Done

Recent research from Professors Delmas and Pekovic of UCLA and the University of Paris-Dauphine indicates that green companies are 16-21% more productive than their not-so eco-friendly counterparts. For years, people behind green business initiatives have argued that going green helps companies become more efficient as they cut costs. But until this study was released, no conclusive research had ever been published to support the claim that green companies are any more productive, a point that has served to deter some companies from taking the green plunge.


The study, titled “Environmental standards and labor productivity,” investigates the direct relationship between environmental standards and labor productivity of companies. The results are groundbreaking, and unable to be ignored by US companies needing to cut costs during our lengthy recession.


The study collected data from  5200 firms in France that were labeled organic or fair trade or had voluntarily adopted environmentally sustainable standards such as ISO 14001, and the results are clear: green companies are significantly more productive than others. What makes these companies get more done? The study examines this as well, and suggests that companies that go green connect with their employees more, inspire more employee loyalty to the firm, and inspire better overall employee attitudes.


Contrary to the myth that making green initiatives can be costly and detrimental to firms, Delmas’ study provides proof that going green is good for companies’ bottom lines. Taking steps to be environmentally sustainable attracts employees who are eco-conscious, increases their loyalty to the firm as they connect with company values, and inspires them to work harder. Hopefully, the news will inspire more companies to take the green plunge and will make our economy a more environmentally friendly place to work in and be a part of.


To read the study in full, click on the following link: “Environmental Standards and Labor Productivity”