Economists world over believe, that in the process of adapting to environment friendly work practices and systems companies lower their bottom lines. But a recent study done by UCLA has proved them wrong. The UCLA study has made a surprising revelation, according to their survey results; Companies that voluntarily adopt to international “Green” practices and standards have a workforce who are 16 percent more efficient in comparison to companies not adapting to International Green Norms.
Prof. Magali Delmas, an environmental economist headed this study. In her words “Adopting green practices aren’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 recruits at eco-friendly companies are consequently more dynamic than employees in other conservative firms”. For her study, Delmas collected data from across 5,220 French companies. She randomly picked up two employees from each company. The total sample size was approximately 10,000 people.
It is like a vicious cycle. First step is to attract and hire the best people in the industry. The next step is to adapt sustainable practices, which leads to attracting even better people and the cycle continues. To prove the findings, Prof. Delmas sighted two real life examples:
- Sports Clothing Company, Patagonia: The Company is known for being a company that practices sustainability, and environment friendly practices. The company on an average receives 900 applications for every new job posting.
- Ambrose Hotel: This is a famous hotel based out of Santa Monica. Employees here are happier and healthier after the company adopted a wide range of sustainability measures. The housekeeping staff of the hotel reported remarkably less headaches, allergies and sick days after switching to non-toxic cleaning products.
The study shows a good potential for both firms and employees willing to adapt to green sustainability practices. Green practices are a proxy for good management. Green certifications are an indicator to managers of increased productivity, to potential employees such certifications are a sign of better workplace/environment, and to investors as a sign of good management practices. The findings have led to change in people’s attitude. People now just don’t want to work, they want to work in a socially responsible manner.