Companies must completely alter the way they now do business and let more than the balance sheet set its course. Corporate sustainability is definitely exploding. Michael Russo, a professor of management at the University of Oregon's Charles H. Lundquist College of Business, conducted a study on businesses that pursue environmentally friendly strategies. 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.