Triple bottom line- Building a roadmap for responsible and sustainable business “Champions of sustainable development like to use a triple bottom line approach based on the tripod of Ecology, Equity and Economy…” – William McDonough In the centuries earlier, a business was perceived to be efficient if it was successful in earning profits for its owners, thereby serving their pecuniary interests well. Out of the class of merchants and later on- with the advent of Industrial Revolution- of industrialists, only a few chose to be bothered about the well-being of their employees, their prime concern being directed towards customer satisfaction …show more content…
Although TBL involves taking a number of risks, whether financial, social or environmental, it has its own payoffs: • Corporate reputation: TBL helps to enhance the repute of firms in the eyes of the stakeholders. Effective communication on the triple P front earns loyalty from all stakeholders. • Social license obtainment: Social license to operate implies an informal acceptance of the organizational operations by its stakeholders and the community in which it operates. Transparency in communicating economic, social and environmental performance to stakeholders and community is deemed imperative for obtaining the ‘license to operate’. • Employee- satisfaction: Having an obligation to show social performance in the annual report enables companies to take care of employees’ needs, drawing loyalty from them and entitling companies to become ‘employers of choice’. • Innovation: Emphasizing on quality-environment leads to R&D opportunities and innovative products and services. TBL-framework use is rising gradually among firms. Lucrative-sharemarket opportunities or a better world- TBL pertains to all. As organizations compete to keep up to the expectations of their various stakeholders, TBL framework should surely open up a new way for judging sustainable
In conclusion, this organization should focus more on their employees and less on profitability. This reasoning comes from the idea that efficient and appreciated employees will dictate the future of an organization through their quality of work and their outlook on the company they work for. Implementing rewards for employees and showing appreciation towards them will make them feel honored to work for such a company. In addition, word of mouth from employees will dictate in the inflow of new or current customers. If employees are treated fairly and respectfully, they are more likely to recommend their place of employment for shoppers. Finally, the implementation of a hybrid culture will benefit the company by meeting the needs of the employer, employees and customers alike.
In a department store, where customers come to shop, customer-employee relations are a key element for the stores survival.Shopping is a major part of the life of almost every person in the country.The flow of money keeps business flowing.If no one spent his or her money, Business would cease to exist.The customer comes to the store expecting to be served, and the employees are trained (or are supposed to be trained) to please the customer.Businesses exist to serve the customer, or at least that’s what the common belief is.Businesses strive to please the customer.If the customer isn’t pleased with the store, then the customer won’t spend his or her money.The customer’s money is the businesses “bread and butter”
The concept of sustainable development, a relatively new concept has now taken action into the structure of many present day organizations. Identified as “green growth”, the formation of the Dow Jones Sustainability Index provides a platform for managers to understand what it takes to be a sustainable organization. On the subject of sustainable development, the World Commission on Environment and Development (WCED) sponsored by the United Nations published a report defining as,“Development that meets the needs of the current generations without compromising the ability of future generations to meet their needs and aspirations” (WCED, 1987). Sustainable development is composed of the following two notions. First is the idea of sustainability (to maintain), and secondly, development (to make better) (Bell, 2003). Improvement of our own lives today does not mean at the cost of damaging the quality of
The strength of the TBL is that it measures the social, financial, and environmental performance of the firm. It also takes into consideration sustainable practices as well as measures profitability and the reduction of environmental impacts. It also empowers
First and foremost, is the factor of co-creation. For sustainability to be achieved companies must ditch the top-down approach and apply the opposite. Business executives must involve other stakeholders, both internal and external, to ascertain what needs to be done and how to do it. This is co-creation. For instance, the co-designing of products is a co-creation approach, where customers are involved in the product development process ensuring the end product satisfies the triple bottom line. Moreover, businesses should make sure they practice co-creative planning. All stakeholders should be involved in the planning process, and this would make certain that the company’s initiatives have an impact on the society.
Triple bottom line is defined as “a corporation’s ultimate success or health can and should be measured not just by the traditional financial bottom line, but also by its social/ethical and environmental performance” (Norman and MacDonald, 2003). There are many advantages when it comes to being a triple bottom line corporation. While incorporating the triple bottom line, you are also incorporating sustainability you’re your business. Therefore, becoming a triple bottom line corporation means it is one step higher towards helping save the planet. Becoming sustainable is cost efficient. Although it may cost a significant amount of money to convert, it will pay itself off in the long run. Additionally, it will help reduce expenses while saving
Serving in the U.S. military as an Intelligence Analyst, the BLUF style of writing is something I am very accustomed to. In plain English, a BLUF never gives an audience more than it needs, yet at no time leaves anything to question. As my time in the greatest American gun-club dwindles and I look to the next chapter in my life, I expect to overcome any shortfalls I am faced with in the future. This is my BLUF.
The first element in TBL is stakeholder which deals with people within and outside of the business. Stakeholders include the community, customers, suppliers, employees, management team and anyone that can relate to the business. Companies that adopt triple bottom line reporting concern about the impact their actions have on the people involved for example, contribution to community, no child labour, safe working condition and good working hours. However, measuring social bottom line can be fairly difficult as it is hard to compare individual or...
Sustainable development adapted after the Brundtlandt Report 1987, is a planned, aim- and process oriented procedure that meets the needs of today’s generations without endangering the needs of future generations and world regions (Ott & Döring 2004, 2006).2 The principle of sustainability describes the efforts of the international community, all countries and people to create equal opportunities for development by explicitly taking into account the interests of future generations. Most frequently the concepts of sustainability are based on a triple bottom line represented by the tree pillars – ecology, economy and social security (e.g. by the Enquete Commission, 1998). Apart from the general weaknesses of the column model that is the interchangeability of dimensions and the ignorance of (social) relatedness (c.f. Ott & Döring, 2004)3 the definition of sustainability (the model is illustrating), is seen as a bad compromise between the needs for conservation of natural resources and the aspirations for economic growth by some scholars (Döring & Muraca, 2010). Irrespective of that, the model sometimes is competed by other pillars such as “knowledge”, “institution”, ”governance”, “arts” or the like (c.f. a.o. Ott & Döring, 2004). Whereas in “Resetting the Compas...
Employees are the most vital resources of a business, when issues arise that delay productivity executives must make plans and find ways to alleviate them. As an executive, my plan would be to create a cultured atmosphere such as Google has created, where employees can delight in waking up every morning to come to work and delivering productivity. Output can be accomplished by numerous methods; these include the employee satisfaction, rewards, and promotional opportunities. “Job satisfaction is an aspect of work that depends on the individual person who can cultivate either positive or negative emotions towards his or her work” (Mujkic, 2014). Toyota’s mission is to insure safe and reliably vehicles are being manufactured; this is guaranteed by quality control.
The triple bottom line is a measurement of performance which includes social, environmental, and financial aspects. These are also referred to as the 3 P’s known as: people, planet and profit. Andrew Savitz explains the triple bottom line as “captures the essence of sustainability by measuring the impact of an organization 's activities on the world ... including both its profitability and shareholder values and its social, human and environmental capital” (Slaper, T. & Hall, T. 2011). The hospitality industry has many practices that include being socially responsible and environmentally conservative. Some of these practices include cost savings and reducing their impact on the environment in the following areas: Energy, Water, Waste, Green
The bottom line for the triple bottom line is to improve the impact on the condition of the profitability of the organization, while having a positive impact on people and the environment. Business do not need to spend money on monitoring the triple bottom line, but maintaining a moral responsibility would be more beneficial (Manktelow, 2015).
Sustainability simply defined to me as balancing act between the development of sustainability is necessary for both planet Earth and humans to survive. This is reinforced in the World Commission on Environment and Development report (1987) that sustainable development must meet the needs of the present without compromising the well-being of future generations”. The Earth Charter Organization widened the idea of sustainability to respect for a culture of peace, universal human rights, nature, and economic justice (What is sustainability?, n.d.).
Concern for employees: employees should be regarded as people not as factors of production. Employers should provide job security as far as possible, train and develop employees, be flexible to accommodate employees’ issues, be opened and honest and allow employees to have a life outside work.
I have understood that the Sustainability study involves the transformation of our civilization toward a regenerative system that promotes healthy and stable ecosystems, consumes natural resources no faster than they can replenish, releases toxic pollutants into our habitat no faster than they can be absorbed, fosters healthy and cohesive habitats that can coexist and continue long time in the future. Sustainability initiatives work to change the world by changing activities in our personal and professional lives to achieve these objectives. I have learned that the Sustainability Revolution is a collection of values centered on healthy ecosystems, economic activities, and social justice. From the intensive focus on this topic during the last few weeks and from further readings on this subject, I have learned that Sustainability encompasses not just conservation and pollution, but a wide array of other issues, including Eco literacy, biodiversity, globalization, socially responsible investing, corporate social responsibility, human rights, population explosion, health, social and environmental justice, farming, labor issues, and women’s rights. I have also learned that Sustainability strategies are essential, transformative, and collaborative work involving participation of hundreds of thousands of citizens, communities and businesses around the world. Every organization and informed citizen needs to understand the perils that lie ahead and contribute their part towards Sustainability