Daily CSR
Daily CSR

Daily CSR

Daily news about corporate social responsibility, ethics and sustainability


‘High Sustainability’ Produce Better Results



04/27/2016

A recent study shows that practicing ‘high sustainability’ in business reaps better benefit.


Dailycsr.com – 27 April 2016 – London Business School informs that “low sustainability” businesses are not performing as well as the ‘high sustainability’ ones, especially in two fronts: “lower volatility on the stock market and by a six percent higher return on equity”.
 
The said report is a result of the findings from a study conducted by Professor Ioannis Ioannou from the London Business School. Professor Ioannou is the assistant professor of “Strategy and Entrepreneurship” at the institute.
 
Ioannou’s reports scrutinised “two groups of public U.S. companies”. Both the groups were “identical” in most parts save their commitments’ agenda to sustainability differed quite a bit. The study looked into some of the practices and strategies that were in place between the year of 1993 till the year of 2011. These data were used to draw the conclusion of “stock market success for the ‘high sustainability’ group”.
 
The reason behind the said pattern lies on the fact that the board members in a “high performing sustainable company” is subject to answer to the “organisation itself” besides the shareholders. The said research of Dr. Ioannou has been reviewed by him “as part of the Guardian and The Observer’s second annual sustainability day”.
 
References:
http://www.ethicalperformance.com/