A2.5.5.1 Reduce Impacts & Treat Employees Well


Save costs by making reductions in environmental impacts and treating employees well

Businesses can reduce costs by making environmental improvements which deliver an immediate impact on the financial bottom line. There is strong evidence that treating employees well can generate financial returns by improving productivity — producing more with less — again resulting in direct cost savings.


Environmental process improvements

Environmental improvements can improve processes. Some savings flow directly from using less energy and materials. Others come from lower pollution costs, in the form of charges for waste handling and disposal, fees, licenses and fines for breaking environmental regulations. Reorganizing production processes, material flows and supplier relationships can also produce benefits such as higher productivity of capital and/or labour. For example, reducing waste volumes can reduce the need for labour and machines which handle waste.


Human resource management

Effective human resource management can cut costs and boost the productivity of the workforce. Sound employment practices such as fair wages, a clean and safe working environment, training opportunities, and health and education benefits for workers and families can all increase morale and productivity while reducing absences and staff turnover. As well as productivity benefits, companies also save on costs for recruitment and training of new employees.