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Study: Sustainable businesses found to be more productive

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Small business owners who are beginning to implement green practices in the workplace may not only be benefiting the environment, they also could be improving the productivity levels of their staff, according to recent research conducted at UCLA.

The study, a joint effort between Professor Magali Delmas, an environmental economist at UCLA’s Institute of the Environment and Sustainability and the UCLA Anderson School of Management, and Sanja Pekovic of France’s University Paris–Dauphine, found employees at firms that have green practices and standards are 16 percent more productive than other businesses.

“It’s good for your employees and it’s good for your bottom line,” said Delmas of adopting green practice. “Employees in such green firms are more motivated, receive more training, and benefit from better interpersonal relationships. The employees at green companies are therefore more productive than employees in more conventional firms.”

The Environmental Standards and Labor Productivity: Understanding the Mechanisms That Sustain Sustainability measured the productivity of workers at more than 5,000 firms who used green standards, as well as conventional practices. The researchers were able to create a logarithm to measure the average value of production per employee.

According to the research, businesses that achieved green certifications were able to create an improved work environment, as well as better levels of productivity. Firms that promote a cleaner environment also commonly have property insurance coverages that protect against liability issues that may arise with energy efficient lighting and sustainable installations.

“It’s truly a big difference between firms that have adopted these practices and firms that haven’t,” Delmas said. “I expected a contrast, but not such a strong, robust jump in productivity.”

How can small businesses go green?
One of the biggest advantages to employing green practices is that many businesses won’t have to alter any major processes to make a huge environmental impact. An article for TreeHugger shared some ideas small business owners can use to become more green.

•Use energy-saving settings on computers: Businesses can save a lot of money by turning off their computers when they aren’t using them and using energy-saving settings when the devices are powered on.

•Reduce paper use, and recycle when possible: The advent of cloud computing and other collaboration initiatives have reduced the need to print out reports and documents. When files are printed, recycle them when they are no longer needed.

 

General Liability Insurance

What Is General Liability Insurance? Commercial General Liability Insurance protects small-business owners from claims of injury, property damage, and negligence related to their business activities.

Workers’ Compensation

What Is Workers’ Compensation Insurance? Workers’ compensation insurance covers your employees’ medical expenses and at least some portion of their lost wages if they are injured on the job.

Business Owners Policy

What Is a Business Owners Policy? A BOP is simply bundled insurance designed to provide essential coverage to certain business owners at a competitive price. A BOP insurance coverage includes

Professional Liability Insurance

Professional liability insurance also called , errors and omissions insurance (E&O; insurance), protects you if a client claims that your services caused them to suffer a financial loss. While general liability insurance is primarily focused on property damage or bodily injury,

Disability Benefits Insurance

Employers in New York State are obligated to offer disability benefits insurance to their employees. This coverage is specifically designed to provide financial assistance in the event of off-the-job injuries or illnesses.



Business Umbrella Insurance

Without Business Umbrella Insurance (also sometimes called Umbrella Liability Insurance or Excess Liability Insurance ), you would have to pay the uncovered expenses out-of-pocket. Even if you carry General Liability Insurance for your business, without business umbrellainsurance you might face a repair, settlement, or judgment in excess of your coverage limit.

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