Russo and a doctoral student looked at the track records of 243 firms from diverse industries over a two-year period. Companies that adopted higher environmental standards than required by regulatory agencies also posted higher profits than other firms in the study. Regulations can increase costs. But Russo's study found that environmental stewardship aided the bottom line. In many instances, regulations actually improve company performance, reported Goodstein, who is also a member of the President's Commission on Sustainable Development.
Interface is among the world's leading commercial carpet manufacturers.
Being a petrochemicals-using company makes the task difficult. But officials said consumers have come calling. They also tend to maintain organizational flexibility, which is valuable as innovative solutions become more prevalent. Russo found that green companies attract new customers because many consumers are eager to buy earth-friendly products. Research shows about 46 percent of the population is interested in buying organic food.