Does environmentalism hurt economic performance? Few researchers have conducted a study to find an answer to the question – how a firm’s environmental commitment affects its productivity. The findings are pretty much interesting. According to the study, companies that voluntarily adopt international “green” practices are more efficient compared to other companies.
A team consisting of Professor Magali Delmas and Sanja Pekovic has studied how a firm’s environmental commitment affects its productivity. For their study, researchers collected data from employees at 5,220 French companies. Later they randomly selected two employees from each company and started their investigation. They found that the employees of companies that voluntarily adopt international “green” practices and standards are 16 percent more efficient and productive than the employees of other companies.
The efficiency and productivity difference between ‘green’ company and ‘other’ companies occur because of the training duration and interpersonal relationships of employees. Company’s motivation for employees is also a big fact in this case. The more a company provides benefits, the more an employee focuses his/her responsibility.
Delmas said, “Adopting green practices isn’t just good for the environment. It’s good for your employees and it’s good for your bottom line. Employees in such green firms are more motivated, receive more training, and benefit from better interpersonal relationships. The employees at green companies are therefore more productive than employees in more conventional firms. It’s truly a big difference between firms that have adopted these practices and firms that haven’t. I expected a contrast, but not such a strong, robust jump in productivity.”
Hopefully, the findings of this research will determine more companies worldwide to adopt an environment friendly agenda. Their findings have been published in the Journal of Organizational Behavior on September 10. For more details, you can head over to UCLA Newsroom
Source :UCLA Newsroom
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