We’ve been wondering if safer companies actually outperform others.
Dr. Diane Chen of the Harvard School of Public Health pointed us to a fascinating study, “The Link Between Workforce Health and Safety and the Health of the Bottom Line” (Fabius et al, Journal of Occupational and Environmental Medicine, Vol. 55, No. 9, September 2013, web). The answer appears to be “yes”.
The study built a hypothetical investment portfolio of safe, healthy, publicly traded companies and compared their stock performance to the S&P 500. Lo and behold, according to the study the portfolio of safe, healthy companies outperformed the S&P 500 by 80% between 1999 and 2012 and by 4.6% on an annualized basis.
The research team examined the publicly traded winners of the annual Corporate Health Achievement Award (CHAA) as determined by the American College of Occupational and Environmental Medicine. The CHAA looks at 17 distinct factors ranging from executive leadership to workplace safety to workplace wellness. Of the 17 factors, 9 factors relate directly to workplace […]