Thursday, October 4, 2012

Material You May Find Interesting

    I found blog post by another author that I thought that you, my readers, may find interesting. The post was by Gerrit Heyns, called "Companies that Invest in Sustainability Do Better Financially." I thought that this may appeal to you because he gives some statistics showing a resource efficient financial company called MoRE World compared to a less efficient company called MSCI World. It shows that from 2005 to 2012, MoRE World has outperformed MSCI World each year in annual investment returns. He also gives statistics on how MoRE World has higher net margins, return on assets, and return on equity, which is a big advantage to the company over its competitors.
    Not only do the resource efficient companies have better annual returns, they also bring to the table immense levels of innovation and entrepreneurship. This could also become a huge advantage. If an organization is more innovative than their competitors, they could cut costs and raise their profits through any part of the organization. They could implement new, more efficient equipment, or more efficient strategies. These strategies or qualities, and new equipment could put these businesses miles ahead of their competitors, which creates a happy environment for that organization. Employees will be happy due to better job security, and management will be happy with the position that the organization is in in the marketplace and the position they have to their competitors.
    He ends his post describing why these efficient strategies are good things that companies should have. They indicate how organizations are performing economically, and that managers should be "taking advantage of the data." Here is a link to his blog if anyone is interested in checking it out. Also, feel free to contact me with any questions, comments, or opinions at any time.


http://blogs.hbr.org/cs/2012/09/sustainable_investing_time_to.html

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