EUGENE–The Social Investment Forum, a national nonprofit organization that promotes environmentally friendly investing, has awarded its 1998 Moskowitz Prize for outstanding research to a University of Oregon study.

The study by UO management professor Michael Russo and UO graduate student Michael Fouts examines how a group of Fortune 500 companies were able to increase profits by embracing green environmental strategies.

Their work was published in the "Academy of Management Journal" after a rigorous peer review process.

"It pays to be green," says Russo. "Greener companies tend to promote innovation, conserve valuable resources in their production systems and enhance their reputation for both prospective employees and potential customers. They go beyond the minimum required by law, and their shareholders reap the rewards."

Russo and Fouts examined the economic and environmental performance of 243 companies over a two-year period. Their research found that companies with superior environmental performance had higher returns on investment compared to their competitors–even after accounting for sales growth and market position.

"We teach our students that ethical and socially conscious behavior is profitable in the long run. This research confirms that premise," says Dale Morse, dean of the UO Charles H. Lundquist College of Business.

"Some mistaken financial ‘experts’ assume that environmentally responsible practices represent costs without benefits," says Alisa Gravitz, Social Investment Forum vice president. "Executives and stockholders take note–when you actually crunch the numbers, it turns out that good environmental citizenship is great for the bottom line."

The Moskowitz Prize, named for renowned financial analyst Milton Moskowitz, is awarded annually by a three-judge panel. Moskowitz, along with co-author Robert Levering, wrote the 1984 best seller "The 100 Best Companies to Work For in America."

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