Triple Bottom Line Analysis

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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

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