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
Job satisfaction is an important issue to address within a work force because it ensures that the employees’ care and value is considered. If the company puts effort into making their employees happy with their work, then this will produce positive outcomes. This includes having more people wanting to work for the company, the employees will want to stay longer, increased productivity and the company will gain an exceptional reputation. When employee satisfaction is not addressed, the ...
Stakeholders and investors are no longer only interested in financial performances, they are interested in the governance of the company like what business practices and business models are implemented, social performances, how the company is giving back to society, how costumers are handled, environment and how diversity at work placed is addressed. Hence relevant information must be provided to the stakeholders to assure them that the company has a sustainable business model (Ridehalgh, 2012).
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
YakkaTech Corp. is growing IT services firm which mainly installs and upgrades enterprise software systems and related hardware. They have grown and consolidated as well as become more efficient at their business but this isn’t without growing pains. Their employees seem to lack job satisfaction and their customers feel that the employees “seem indifferent to their problems.” The company’s voluntary quit rates have risen above the industry average while management raises pay rates in the hopes that customer service quality and productivity would improve. However, customer service complaints and productivity remain low and employee moral seems to be low as well.
It is well established reality that organisations in the world today can no longer survive without focusing on their employees. If they have to be at the competitive edge they have to invest in human resource, and placing their employees on top priority. This notion has lead to the strategies that, most organisations are pursuing through employee management. To achieve the optimum performance from employees organisations must motivate their employees, and have to engage them in activities that will benefit and help employees in achieving their predetermined goals and objectives. In order to achieve this, it is imperative for managers to set in motion work conditions that will help employees to achieve satisfaction of their job, low turnover and absenteeism rate and promoting the environment that promotes the organizational commitments and organizational citizenship behavior. Job satisfaction has been identified as a major requirement for organisations which aim to achieve excellence in their operations. Armstrong (2003) refers to job satisfaction as the attributes and feelings people have about their work. By extension, job satisfaction will mean positive or favourable attitudes towards one’s job whilst a negative or unfavourable attitude indicates job dissatisfaction.
Dahl(1972: 18) “every large corporation should be thought of as a social enterprise: that is an entity whose existence and decisions can be justified insofar as they serve public or social
The purpose of this report is to brief the management on the importance of employee satisfaction in achieving the competitive goals of the organization through increasing the retention of the employees.
“Sustainable Development: At its heart, sustainable development is the simple idea of ensuring a good quality of life for everyone, now and for generations to come. It is about living within the carrying capacity of the environment so that how we live, work and enjoy leisure activities, which do not harm or put undue pressures on the environment. It is about ensuring everyone has the opportunity to have a decent education, a quality environment that they take pride in, good health and a decent job (n.p, 2014)”
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).
...s in the corporate world by setting new standards to promote and better satisfy their employees. We chose four leading companies in four different industries. The above analysis definitely reveals that perhaps one of the reasons why these companies are the leaders in their industry is because they are well aware of the importance of the work force. They mention in their mission statements as well that yes in deed customers are important but in order to make the customer happy they first need to motivate and satisfy the employee as well. According to Citibank, the general belief is that a happy worker is a motivated and loyal one. So keeping employees' spirits high is a sure-fire way of maintaining a productive workforce. A productive work force would ultimately lead to a healthy organization which would not only promote the society its working for but also itself.
Presently, Corporate Social Responsibility (CSR) has become paramount as forward-thinking organizations embed sustainability into core business operations to create shared value for business and society. Sustainability is the concept that organizations that are socially responsible will outperform their competitors by concentrating on society’s problem, which means organisations have moral, ethical and philanthropic responsibilities in addition to its main responsibility which is to make
The sustainability of the ecosystems on which the global economy depends must be guaranteed. And the economic partners must be satisfied that the basis of exchange is equitable” (World). This quote demonstrates the complexities of sustainability. Another thing corporations should focus on when trying to be sustainable is their environmental impact.
Corporations that place an importance on corporate social responsibility usually have an easier experience when dealing with politicians and government regulators. In compare, businesses that present an irresponsible disregard for social responsibility tend to find themselves fending off various reviews and probes, often brought on at the assertion of public service organizations. The more positive the public insight is that a corporation takes social responsibility seriously; the less likely it is that innovative groups will launch public campaigns and claim government inquiries against it.
It has been observed that motivated and satisfied employees have directly relate with the business performance, profitability and eventually, its stability (Shemiah, 2009). However, dissatisfied and less committed employees have a negative impacts on the performance and profitability of an organization (McKinley, Sanchez, & Schick, 1995). It should be taken into account that disengaged and less efficient employees cost the organization thousands while losing the productivity (Hislop,