The Importance Of Sustainability

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Sustainability is often defined as managing the triple bottom line. The triple bottom line is a process by which companies manage their financial, social and environmental risks, obligations, and opportunities. The triple bottom line is also referred to as the 3 P’s (profits, people and planet). Sustainability represents flexibility over time in that businesses create economic value, healthy ecosystems and strong communities. A sustainable business varies depending on the field. For example, in manufacturing, a sustainable business may include waste elimination and greenhouse gas reduction, whereas in retail, experts focus on ways to minimize waste in packaging and ways to facilitate energy use in stores. Sustainability has a variety of meanings.…show more content…
John Elkington, the founder of a British consultancy called SustainAbility, first coined the phrase in 1994. He argued that companies should be preparing three “bottom lines”. The first bottom line is the bottom line of the profit and loss account. The second bottom line is that of the company’s people account, which is a measure of how socially responsible an organization has been. The third bottom line Elkington stated is the company’s planet account, which is a measure of how environmentally responsible a company has been. That is where the three P’s come in. The triple bottom line consists of “people, profit and plant”. Producing a triple bottom line makes a company take account of the full cost involved when doing…show more content…
They include; cost savings, consumer demand, risk mitigation, leadership, tax incentives, employee retention, resource limitations, keeping up with the competition, new revenue opportunities and brand reputation and publicity. (Spector, 2012). A company could become more energy efficient and save billions in operating costs just by changing light bulbs or replacing old computers. Being more energy efficient can also attract new customers who care about the environment. Also, federal, state and local governments offer financial incentives taking part in environmentally responsible activities. Scarcity of natural resources is also increasing; this also means that cost is increasing as well. Which should be an incentive to protect the resources so they will be
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