Corporate Sustainability Reputation Can Account For 11% Of Firm’s Value

Two new reports presented at the recent Commit Forum shed more light on the increasing value of sustainability to businesses.

news summary of both reports noted that companies with strong sustainability reputations benefit from:

  • Increased company value. According to the report, an average of 33% of a company’s value can be attributed to its name, and up to one third of that name value can come from good corporate citizenship. In other words, a company’s strong vision for sustainability could account for 11% of its value.
  • Increased revenue. Sustainability leaders can expect up to a 20% increase in revenue and can ask customers to pay up to a 20% premium for its products.
  • Increased worker productivity. Companies that lead in sustainability can expect workers to respond positively with 13% greater productivity, and reduction of up to 50% in turnover rate.
  • Increased ability to attract talent.  According to the report, 92% of workers would leave their current job to work for a company with a strong reputation in CSR and sustainability, and they would do so for less. On the other hand, 65% of workers would go to a company with a poor reputation, but only with an average 57% wage increase.

Read the two reports here: Project-ROI-Report and The Cost Of Bad A Bad Reputation.


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