Good Governance Helps Good Companies Do Better

The reasons for companies to be more sustainable are many: risk avoidance, consumer/society demand, cost savings from reductions in use of resources, lower costs of renewable energy, and a more motivated workforce. The final rationale is an enhanced bottom line with increased profits earned from sustainable strategies and practices. But the overarching principle could be summed up simply as good governance. Certainly, investors who are flocking to sustainable investments think so. A column in The Motley Fool, an investment advisory, about “why invest in socially responsible companies” highlights The Reputation Institute’s Top 10 list of such companies: Google, Microsoft, Walt Disney, BMW, Apple, Lego, Volkswagen, Intel, Rolex, and Daimler. The one common thread you can see at a glance is that all are generally considered very well run corporations. Good governance could be the main key to doing well while doing good.

John Howell, Editorial Director