Corporate social responsibility. Sustainability.  Stewardship. Businesses often use these terms to describe their commitment to protect the natural world and contribute to a fair, humane society.  But how do we know when a company is truly working hard to create positive outcomes, versus simply trying to create a positive image?

As a consumer, I’ve tried for a long time to dig deeper into the nature of the companies I support with my dollars. Since I’ve become a parent, my awareness has only become more heightened. Trying to reconcile what I buy with my moral and ethical convictions is often a dizzying experience.

One of the best indicators that a company is walking the sustainability talk may seem counterintuitive.  When a company’s stewardship efforts – that is, its work to reduce environmental impacts and to act in a socially responsible manner – are tied to its economic bottom line, then we have something.  Here’s why.  If a company tries to adopt a set of practices purely because it’s a good thing to do, the effort will likely be short lived.  Private businesses must make a profit to survive, and any efforts that take away from that profitability jeopardize the health of the company.  However, companies that tie sustainable practices to economic performance often succeed where others fail.

For example, one client has found that shipping goods by sea, versus air and land, dramatically reduces greenhouse gas emissions (GHGs) and transportation costs.  The company has a very ambitious goal to reduce GHGs and this effort has helped tremendously.

Another client has found success by building homes that are highly efficient, healthier (with no chemicals off-gassing that affect air quality), and near public transportation.  While these practices can cost more because green building products are often more expensive, they tend to outsell their competition. This is because homebuyers now have a heightened awareness of indoor air quality, energy efficiency, and because a home on a transit line reduces the need to drive.

Through these observations I’ve trained myself to move away from being either a cynic – believing we’re in a horrible environmental tailspin – or from wearing rose-colored glasses – waiting for a miracle to fix our social and environmental problems. I’m now a self-described hopeful realist.  I’m a realist because I can see the true nature of business – for companies to exist they must make money.  And I’m hopeful because the most innovative companies can find ways to tie their sustainability efforts to their economic bottom line.  From what I’ve seen so far, these are the companies that will thrive in the long-term while helping to create a healthier planet and more equitable society.

-Josh Chaitin