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Companies With a 'Culture of Health' May Outperform Others

(Science Daily) 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…
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… 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. −0.06% for the S&P 500. In the lowest-performing scenario, CHAA companies had an annualized return of 6.03% vs. 2.92% for the S&P 500.
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