The Stock Performance of C. Everett Koop Award Winners Compared With the Standard & Poor's 500 Index.

Abstract

Objective:To explore the link between companies investing in the health and well-being programs of their employees and stock market performance.Methods:Stock performance of C. Everett Koop National Health Award winners (n = 26) was measured over time and compared with the average performance of companies comprising the Standard and Poor's (S&P) 500 Index.Results:The Koop Award portfolio outperformed the S&P 500 Index. In the 14-year period tracked (2000–2014), Koop Award winners’ stock values appreciated by 325% compared with the market average appreciation of 105%.Conclusions:This study supports prior and ongoing research demonstrating a higher market valuation—an affirmation of business success by Wall Street investors—of socially responsible companies that invest in the health and well-being of their workers when compared with other publicly traded firms.