Dispelling old ways could mean profiting beyond what you normally would for the following reasons.
Taking the three-pronged framework of ethical investing as deciding factors, the level of commitment from companies to uphold better environmental practices and social standards is now dictating performance like never before.
For example, poor waste management and high carbon emissions can result in costly fines for your company. This means when they take the hit, so do you.
Furthermore, an unhappy workforce means overall poor business performance and having weak labour standards or poor employee engagement will most definitely result in expenses accrued due to staff turnover.
Now, companies that put time and effort into sustainable output will benefit from being more conscious.
Things such as an emphasis on energy efficiency will reduce long-term costs. Training staff to better the workplace environment is likely to spark innovation and foster competitive advantage.
At the company’s core, how the board is made up has historically had impact on the business’ potential for bankruptcy. Therefore, if owners work to make their selections more diverse and inclusive, it could prevent this from happening.