WSJ: Sustainability Works!

In a brief, but noteworthy article on the Wall Street Journal website (“Sustainable Success”), Prof. Lutz Kaufmann of the Otto Beisheim School of Management in Vallendar/Germany and his research team argue the case for corporate responsibility in the developing world:

A commitment to improving social and environmental conditions in the developing countries where a company operates is the key to maximizing the profits and growth of those operations.

That’s the conclusion we drew after studying more than 200 companies. As a group, the companies most engaged in social and environmental sustainability are also the most profitable.

This may not come as news to those in the CR/Sustainability field that have been making the case for years. But it stands in stark contrast to recent calls to scale back sustainability expectations in light of the recession, particularly in developing and emerging economies. We will try and get some more info on the underlying research.

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2 Responses to WSJ: Sustainability Works!

  1. bouhanaperrine says:

    Thanks for the post. Of course, such results do not come as a surprise for all of us who work in the CR/Sustainability field.

    However, this makes me think about the research conducted by the Economist Intelligence Unit last year, and the results they came up with: it is difficult to link good CSR performance with good financial performance. Why? Becuase we don’t know if this is because they are sustainabile that companies can be profitable, or it is because they are profitable that they can invest a lot in sustainability…

    To follow. Looking forward to see the results of the research.

    Perrine http://www.sustainabilityconversations.com

  2. Julia says:

    Is this the same in the “developed” world?

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