The analysis found that in 16 of the 18 industries studied, companies committed to sustainability outperformed industry averages by 15% over the six months from May through November 2008.

The study is called Green Winners: The Performance of Sustainability-focused Companies in the Financial Crisis.

But perhaps the most interesting aspect of the study results isn’t the fact that the companies were green: it’s that they were sustainable in a larger sense of the word. According to the study, there were characteristics shared by the leading companies which included, among others (boldface emphasis mine):

• A focus on long-term strategy, not just short-term gains
• Strong corporate governance
• A history of investment in green innovations

Sounds like the types of companies we can get excited about around here.

photo credit: Witt Istanbul Suites

Raise your hand if you’ve been affected by layoffs – meaning you either had to accept one or dole them out – due to the downturn in the economy. Yeah. We thought so.

Now raise your hand if you think more layoffs are in store.

That’s likely the truth, and another likely truth is that a good many companies are probably hurting themselves and their customers by approaching layoffs poorly. Yes, layoffs stink. No one wants to get one; no one wants to give them.

That said, when they’re handled with care and caution, layoffs can definitely help a company survive the downturn. Jimmy Guterman, writing over at HarvardBusiness.org, lays out some thoughtful advice about reducing the pain of ill-considered cuts:

Thinking strategically about both groups and treating them respectfully ensures that the virtuous circle — the vital link between engaged employees and satisfied customers — remains unbroken. And it positions your company for greater success when the economy turns around.

Layoffs are going to happen. It’s a non-idealist situation, that’s for sure, but if you’re the one doing the laying off, there are idealist ways to handle the situation. You can approach the decision of which employees to let go from a customer experience standpoint, as well as from the perspective of the remaining employees.

(Of course, if you’re the one being laid off, there’s not a lot you can do to control the outcome of the immediate situation and you have our sympathies. We sincerely wish everyone the best of luck in finding even more meaningful work the next time around.)

Lastly, and this can’t be said enough, although layoffs are depressing and in some cases inevitable, that doesn’t mean they can’t be approached with respect and a forward-looking attitude:

For those who must go, the best procedure is to “lay off people as if they were future customers,” he says. “When you let someone go, try to put together a safety net, do the best you can do, provide relocation support. Treat these people as potential future customers and potential future employees — as if they will one day be in a position to send business to your company.”

The whole article is a great read.

[via HarvardBusiness.org]

Image credit: adamsofen, via flickr

Can you be an environmental idealist in this tough economic climate and still be profitable? That’s the essence of the question posed over at the Greenbang corporate responsibility blog, where they discuss a decline in cleantech investmentments from 2007 to January 2009:

Although investment volume is only one metric to measure companies’ commitment to green, it does suggest that this commitment is at risk in such tough economic conditions. Are companies starting to relax green business policies because of pressures on the business bottom line and does it need to be a tug of war?

As we’re fond of observing, there are many simple and inexpensive ways for businesses to be dedicated to the environment, but actually investing in green technology or greener alternatives is a real sign of progress because it recognizes the long-term picture in which ecology is inextricable from economy. Although it seems natural for skittish businesses to pull back on what seem like short-term expenses due to uncertainty about the timeline of the recession, might that reactionary move be corrected in coming quarters with businesses digging into the current circumstances as  economic reality, as we come to the realization that investments must still be made for any progress to take place?

Since it’s Earth Day week, this may be easy to observe anecdotally: have you noticed a cooling off in enthusiasm for environmental stewardship from business this year? Or does it seem to be just as much a hot topic as ever?

via Do environment and business need to play tug of war? | Corporate Responsibility.

Image credit: Dan4th, via flickr

An article in FT.com addresses the gloom typically felt by executives (and others) during a downtown and offers reasons to be cheerful.

There is still business to be done, demand to be met, and customers to be served.

Moreover:

Donald Sull, professor of management practice at London Business School, wrote recently about seizing the upside of a downturn. “Most managers look for golden opportunities when the good times are rolling,” he said. “This is a mistake. The best opportunities often arise during downturns when distressed sellers are forced to offload valuable assets at bargain prices.”

Sure, it’s hard to hear this when you’re struggling with something external, like being out of work, or if you’re a manager, being required to let people go. These are difficult circumstances, but it’s no less true that there are still opportunities out there.

Now let’s hear from you: what are your stories of opportunities that have come to you at this most unexpected of times?

They not only perform better during expansions but recover faster when growth rebounds from an economic slump.

Source: HarvardBusiness.org – The Daily Stat: Which Companies Bounce Back, Post-Recession?.

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