It’s Time to Tie Executive Compensation to Sustainability

Read the full story in the Harvard Business Review.

Despite conflicting messages about climate change from U.S. government leaders, sustainability is getting more and more attention at American companies. Shareholders are ratcheting up their demands on environmental and social issues. Consumers are registering their concerns about how companies make their products. And talented Millennial employees are voting with their feet by leaving laggard companies behind. Meanwhile, new technologies are making it easier for sustainability investments to pay off in the middle to long term.

A similar phenomenon happened in the 1980s, when quality became a significant issue for manufacturers. Many of them responded by including quality metrics in their compensation incentives. These moves helped to focus executive attention and ensure that quality initiatives actually got carried out. Over the next decade, quality levels improved substantially. It’s time for companies to start doing the same thing for sustainability.

Author: Laura B.

I'm the Illinois Sustainable Technology Center's Sustainability Information Curator, which is a fancy way of saying embedded librarian. I'm also Executive Director of the Great Lakes Regional Pollution Prevention Roundtable. When not writing for Environmental News Bits, I'm an avid reader. Visit Laura's Reads to see what I'm currently reading.

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