From Employee-Owners to Environmental Champions

When employees become owners, companies achieve measurably stronger environmental performance. Here's how this ownership model drives sustainability excellence.

- By Jegoo Lee

A North Carolina engineering company slashed its waste to near-zero levels thanks to the active involvement and support of its employees.

An Indiana consulting firm pioneered eco-friendly business practices, driven by the commitment and engagement of its employees. In Rhode Island, a local coffee shop enhanced its sustainability practices from bean to cup, and a restaurant group transformed hospitality waste into community resources, with employees playing a key role in both cases. Behind these environmental achievements lies an important organizational catalyst: All four companies are 100% employee-owned.

Employee ownership has received growing attention recently as an alternative ownership model that could help address societal wealth inequity. What is less well understood is the effect that this model of ownership has on a company’s achievement in addressing environmental issues. When employees are not merely workers but owners with a direct stake in a company’s success, such organizations are able to unlock a powerful model of business engagement in environmental sustainability.

A new study I coauthored that was recently published in the journal