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Back You are here: Home Low-Carbon Low-Carbon Biz ‘Green’ companies have more productive employees

Low-Carbon Biz

‘Green’ companies have more productive employees

Companies looking to boost their productivity should think about “going green” as a University of California, Los Angeles-led study found that employees in companies who follow green practices are 16 percent more productive than the average.

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According to the study’s findings, employees in firms that voluntarily adopt international green practices and standards are more motivated, receive more training and benefit from better interpersonal relationships.

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Professor Magali Delmas, an environmental economist at the university, and Sanja Pekovic from France’s University Paris-Dauphine are the first to study how a firm’s environmental commitment affects its productivity.

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The two collected data from a survey of employees at 5,220 French companies, randomly selecting two employees from each company for a pool of around 10,000 people. The companies that had voluntarily adopted international standards, eco-labels or the International Organization for Standardization’s ISO 14001 certification were identified as green.

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"Green practices make a company more attractive because so many employees want to work for a company that is green, but we also argue in this paper that it's more than just wanting to work there – it's working more,” said Ms. Delmas.

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According to Ms. Delmas, green certifications can be used by managers to increase productivity and be taken by potential employees as a sign of a better work environment. The higher-productivity effect stems from employees’ appreciation for their workplace.

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Going green can also help the company meet its bottom line. Previous research has already shown that sustainable business practices can result in cost-efficiencies. They can also be taken by investors as indicators of good management practices. – EcoSeed Staff

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