“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 and large returns on investments only. However, as liberal politics, dissolution of several monarchies and women-empowerment movements shook the world in the late 19th and early 20th centuries, businesses began realizing the meaning of value addition for all stakeholders in a business- whether they be the shareholders, the employees, the suppliers or the customers and so, eventually dawned upon the firms the need for sustainability in business, the need for supporting the present generation in such a manner that leaves the future generations self sufficient too. Thus, as the world grew older, so did its natural resources with several of them getting depleted precariously due to their relentless exploitation by mankind, often leading to natural calamities. Such occurrences catapulted companies into deciphering the quintessential connections among maintaining financial stability, environmental quality and promoting social well-being.
The triple bottom line- A brief description
The framework ...
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...perations 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 performance.
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