Sep. 11, 2013 — Companies that build a culture of health by focusing on the well-being and safety of their workforce may yield greater value for their investors, according to a study published in the September issue of the Journal of Occupational and Environmental Medicine (JOEM), official publication of the American College of Occupational and Environmental Medicine (ACOEM).
The stock market performance of companies that had received ACOEM's Corporate Health Achievement Award (CHAA), which annually recognizes the healthiest and safest companies in North America, was conducted at HealthNEXT LLC and analyzed by lead authors Raymond Fabius, MD, and R. Dixon Thayer, and colleagues. Companies that receive the award must be engaged in demonstrable and robust efforts to reduce health and safety risks among their employees.
Tracking an initial theoretical investment of $10,000 in publicly traded CHAA-recipients from the mid 1990s to 2012, researchers found that these award-winning CHAA companies outperformed the S&P 500. Four investment scenarios were created, using a combination of simulations and past market-performance to create investor portfolios for comparison. While the margin of return varied, CHAA recipients outperformed the market in each of the four scenarios.
In the highest-performing scenario, CHAA companies had an annualized return of 5.23% vs.
The stock market performance of companies that had received ACOEM's Corporate Health Achievement Award (CHAA), which annually recognizes the healthiest and safest companies in North America, was conducted at HealthNEXT LLC and analyzed by lead authors Raymond Fabius, MD, and R. Dixon Thayer, and colleagues. Companies that receive the award must be engaged in demonstrable and robust efforts to reduce health and safety risks among their employees.
Tracking an initial theoretical investment of $10,000 in publicly traded CHAA-recipients from the mid 1990s to 2012, researchers found that these award-winning CHAA companies outperformed the S&P 500. Four investment scenarios were created, using a combination of simulations and past market-performance to create investor portfolios for comparison. While the margin of return varied, CHAA recipients outperformed the market in each of the four scenarios.
In the highest-performing scenario, CHAA companies had an annualized return of 5.23% vs.