In an age where millennials and generation z are set to flood the workforce, research has made it clear these generations are wired differently than their parents and grandparents. It’s important for a manager to consider investing in sustainable practices. Whether they invest in energy, human capital, or other avenues, reducing the possibility of a company’s exposure is always on a manager’s mind. Kelley School of Business Assistant Professor of Accounting Sam Tiras breaks down how a manager can implement Economic Value Added (EVA), and present it to his or her CFO.
Show Notes: 0:01 Shane Simmons and Phil Powell introduce listeners to The ROI Podcast. 0:30 Through some online research, Shane learned 65 percent of employees at Fortune 100 companies want to see their CEOs publicly support renewable energy. 0:55 Of those 65 percent of employees, 73 percent are millennials. 1:08 Phil says the millennial workforce is forcing a new perspective on business. 1:36 Shane introduces the episode's topic: sustainability. Assistant Professor of Accounting Sam Tiras explains the broad view people often have of accounting. Sam introduces the listeners to Economic Value Added (EVA). 3:48 Investments come in many forms: human capital, reputation capital, sustainability. 4:37 Investing more in EVA reduces your risk, which prevents your company from losing money. 5:11 Companies that are proactive when investing into sustainable practices outperform companies that just meet the minimal standards. 6:30 EVA says look at your benefits, and then evaluate your cost. 7:58 How to sell investing more capital in sustainable practices to your CFO. 8:58 CFOs want to help you make investments that are good for the company, that means managers need to think beyond the numbers given to them from the accountants. 9:24 This episode's takeaway for listeners. 10:26 How to subscribe to The ROI Podcast.