A recent study shows companies with good safety records are likely to have good overall financial performance, too.
Companies that build a culture of health by focusing on the well-being and safety of their workforce yield greater value for their investors. That’s the conclusion of The link between workforce health and safety and the health of the bottom line: tracking market performance of companies that nurture a “culture of health,” published in the Journal of Occupational and Environmental Medicine.
The researchers looked at companies that had received the Corporate Health Achievement Award (CHAA) from the American College of Occupational and Environmental Medicine (ACOEM). The CHAA recognizes the healthiest and safest companies in North America each year.
The result: The CHAA award-winning companies outperformed the S&P 500 in all four investment scenarios that were tested.
Focusing on health and safety of a workforce impacts healthcare costs, productivity and performance. These companies didn’t just happen to have healthy and safe workers. The employers built cultures of health and safety, and in turn, that provided a competitive advantage in the marketplace.
This research may have also identified a link between companies that focus on safety and health and those that successfully manage other aspects of their businesses.
Among the 29 companies that have won the CHAA since 1996: American Express, Johnson & Johnson, Caterpillar, Chrysler, Marathon Oil, IBM, Dow Chemical Co., GE Power Systems, Allied Signal, Boeing, and Lockheed Martin. These companies have undergone a rigorous evaluation by health experts, including on-site visits and extensive documentation.