Linh Chi Nguyen

101133310

The concern for sustainability has been increasing among consumers and businesses

alike. Customers are worried for the environment and the matter of making profit troubles

many businesses. Stauffer (2010) outlines that “profit does not flow from a company’s

attention to environmental (planet) and social (people) concerns” and “a company will lessen

its profits when it pays attention to the planet or people”. This criticism could be justified by

the expensive costs to switch to sustainable materials and resources for example. However,

this discussion is not to justify it, but to argue that by paying attention to the planet and

people, companies can still make profit and could become even more blossoming by doing

so.

Before the matter of sustainability was highly valued, the ultimate objective of

businesses is to make money, to maximize profits. Nevertheless, Walker, Yu, Zhang (2020)

stated that “this perspective fails to recognize the interconnection of the triple bottom line,

where economies do not exist without the environment and society. Corporations rely on the

environment for resources and to dispose of their waste, and on society for employees,

customers and regulations; no single component of the TBL exists in a vacuum”. Many

leading companies have adopted the triple bottom line to their corporate philosophy due to

the impact one could make to the environment and society but also due to the rising interest

of consumers in preserving and sustaining them. “The TBL framework goes beyond the

traditional accounting measures of organisational profits, return on investment and

shareholder value to include ecological (environmental) and social dimensions” (Caldicott et

al., 2020). This means that the benefit generated from companies investing in society and the
environment is more than monetary terms but an opportunity to outperform the competition,

the retention of talent (Kuprionis & Styles, 2017), brand recognition and community support.

Adopting sustainable practices also provides organizations with a competitive

advantage in the industry, thus improving the company’s profits. Consumers’ awareness

about the environment and society are increasing significantly and this is creating a shift in

the market and in the way businesses operate. “According to the 2015 Cone Communications

Millennial CSR Study, 91% of millennials would switch brands to one associated with a

cause. If a company can leverage its CSR initiatives to open new markets, there is a potential

to widen audience and market share. As such, transparency and traceability gained through

CSR could mean a competitive advantage when it comes to navigating new market

opportunities” (Manis-Anderson, 2016). By incorporating the concern for the environment

and for the people, the companies are strengthening buyer–seller relationships, increasing

perceptions of product quality, improving business-to-business brand equity, lowering

production costs and increasing productivity, and increasing flexibility in responding to

environmental shifts; which all lead to market share gains and the ability to charge higher

prices and boost profits (Gillespie & Rogers, 2016).

The return on being sustainable is estimated to be much higher than the lost. One of

the gains would be brand recognition and acceptance from the community, thus competitive

advantage and attracting more customers. In the Marketline Case Study (2012), it was

revealed that if a company, especially a sizable one, faces a scandal that it is being unethical

or damaging the environment, this could damage its reputations and harm sales. According to

Bodhanwala (2018), “adoption of good sustainable strategies by firms as code of ethics,

sustaining environmental and ecological balance, human capital retention and development

and socially responsible behaviour, etc. should lead to building brand reputation and better
management of businesses”. It is recognized by many studies and researches that by having a

CSR policy and carrying out sustainable practices, companies are able to gain brand

recognition and competitive advantage over competitions in the market. “Recognition from

consumers that a company is doing a considerable amount to tackle global environmental

problems can generate goodwill from consumers, which has an effect when consumers are

choosing between rival products, and can influence them to alter their choice of product

accordingly” (Marketline Case Study, 2012). Moreover, socially responsible companies are

proved by Peršič, Markič & Peršič (2018) to be “socially beneficial and are also

simultaneously the basis for the long-term development and growth of an organisation, as

well as the extended social and natural environment”. When paying attention to the

community and environment, corporations are able to build trust and create a bond with the

people in the community and with other businesses also. Bodhanwala & Bodhanwala (2018)

claimed that society acceptance is crucial to the long-term survival of the corporations as it

benefits corporations in many ways, from attracting scarce resources, better quality

workforce, customer loyalty, political approval to support from the civil society

organisations, etc.

Making an effort to protect the planet and the community can also help the enterprises

retain employees and attract talents, whose values are vital to the operations of a company.

Together with the surging concern among consumers, millennials also take into consideration

the core value of an organization when seeking employment. The conception that employees

is the driving force behind the success of a business shines light on the importance of the

human resources to the prosperity of the company. Ryan (2016) mentioned that once a

company is reputed to be a toxic workplace, it would have lost a critical competitive

advantage that could have powered its growth. He also states that the goals that companies

are aiming to achieve is “powered by the same energy source”, which is the commitment and
talent of the employees”. It was reported that “70% of millennials would be willing to work

for less pay for a company that best aligns with their ethical and social beliefs”

(Manis-Anderson, 2016). Moreover, a company’s CSR also includes the “people” aspect of

the triple bottom line, which promises “health and safety, work/life balance, diversity, and

opportunities for training and development for employees”. Therefore, when companies show

that they are investing in employees and the community, they will have an advantage in

attracting and retaining engaged, high-performing employees (Manis-Anderson, 2016).

Ultimately, regardless of what is being said, maximizing profit is still the fundamental

goal of businesses. Some argue that investing in sustainable practices is harming the

company’s bottom line even when it brings public image and talented employees. However,

that might not be the case because there are studies implying that by investing in eco-friendly

practices, the companies are actually saving money and generating more profits. A research

by Gallagher et al. (2018) revealed that “sustainable firms performed better than their

counterparts, and generated more profit via their sustainability strategies". A report by the

World Wildlife Fund for Nature (WWF) displayed that a business’ return on investment

(ROI) for “green interventions” was placed at 233%. (The 3% Solution, n.d.). Undoubtedly,

the initial investment on green operations and renewable resources is extravagant, however,

the long-term return is assessed to be lucrative. There has been data collected suggesting that

“an average commercial property in the U.S. can save up to 75 percent by investing in solar

power. The average monthly electric bill for a commercial property reduced from $1950 to

$500 after the switch. In sourcing safe concrete and renewable materials from the best

providers available, savings accumulate for both power and water utilities. A business can

operate their LEED-certified building at an almost 20 percent reduction in maintenance costs.

Carbon emissions see a drastic cut, as well” (Huntington, 2018). For example, DuPont
committed itself to a 65% reduction in greenhouse gas emissions in the 10 years prior to 2010

yet saving $2.2bn a year through energy efficiency by 2007. Mark & Spencers also launched

its "Plan A" sustainability programme in 2007, estimating a loss of £200m in the first five

years but the initiative had generated £105m by 2011 (Zokaei, 2013). Robinson (2019) saw

that “sales of environmentally-friendly products in the United States totaled to more than

$40m in 2012”, concluding that “companies that make the grade will earn the spending

dollars of these consumers and, as a result, enjoy higher levels of sales and increased profit

margins”. Zokaei (2013) revealed that “70% of consumers would be positively influenced by

brands that use sustainable packaging and recyclable materials”.

Conclusively, Stauffer’s criticism of the Triple Bottom Line is not justified in this

discussion. It is undeniable that there are costs that come with sustainable practices, however,

the benefits, including profits, coming from investing in sustainability is valued to be more

laudable and more impactful than just monetary terms. Environmental friendly and social

friendly practices not only result in the company's brand image and retention of talents but

also competitive advantage in the market and an increase in profit. The three aspects of the

triple bottom line are interrelated and will support one another. Planet, People and Profit are

the three pillars that will help the companies stand strong in the long-run and if one is weaker

than the others, the business will crumble. Thus, equal attention should be paid to the planet,

people and profit so the company can survive and prosper.

an economy cannot exist without the environment or society, and that a shareholder-profit

focus can be detrimental to the environment and society, and can even be an impediment to

achieve corporations’ long-term goals and viability. Paradox theory suggests that managers

that accept the inherent tensions can transcend them by recognizing two facts. One is the

dynamic relationship between the tensions where one cannot exist without the other(s).

Taking care of the 3BL in a dynamic relationship generates a virtuous cycle. Firms investing

more in the environment and/or society can achieve a better reputation for fulfilling their

implicit contracts with stakeholders, and stakeholders are more likely to build long-term

relations with the firm, lowering transaction costs including negotiation costs and

communication costs, and thereby enhancing financial performance (Walker, Yu, Zhang,

2020).
Although the process can take nine to 12 months and the amount of data gathered can be

time-consuming up front, Cantero says the resources put into the certifi cation are worth it;

cost-savings from eliminating waste, preventing employee turnover and growing the

customer base compensates for the initial time investment (Graybill, 2020).

Graybill, S. (2020). Sustainability impacts profit: Brands demonstrating responsibility earn

consumers’ loyalty. Beverage Industry, 111(3), 47.

Franz Paasche, senior vice president of corporate affairs and communications at PayPal

Paasche said corporate values such as inclusion, and the goal of democratising financial

services have driven PayPal’s social purpose. “Every company has core competencies. We

were built for this. We are good at digital payments. If we can align that with the public

interest, it’s a motivating and mobilising force for our employees, and it enables us to engage
with governments and regulators and other companies, because we know that we can’t do this

alone.”

Even companies where social purpose is less core to their business are increasingly finding

value in the concept. Jim Vella, president of the Ford Motor Company Fund, which funds

Ford’s community activities, told the New York conference: “It’s become obvious to the

leadership [of Ford] that this [fund] is not just about being a good corporate citizen but about

doing good business, for three reasons. The research we have done has shown that our

customers expect us to do this, our employees expect us to do this, and our dealer partners

want us to do this because it’s a differentiator in the marketplace. We know that part of our

mission to build strong communities and improve people’s lives is to drive purchase

considerations. People may think that isn’t philanthropic but if we want to have a seat at the

table we have to show we add value like any other part of the company.”

Slavin, T. (2017, September 4). Proof Positive that people and planet equals profit. Retrieved

October 23, 2020, from

https://www.reutersevents.com/sustainability/proof-positive-people-and-planet-equals-profit

The founder of another winning venture, San Diego-based Dreams for Change, was inspired

by the fact that homeless individuals often cannot find safe, restful places to sleep—which

means they might be too tired during the day to take classes, apply for jobs, or pursue other

activities to improve their situations. Because many homeless individuals own vehicles,

Dreams for Change created its Safe Parking Program, which provides safe overnight parking

options that do not violate local ordinances that prohibit people from sleeping in their cars. In

addition, the company’s founder launched a fleet of food trucks that sells healthy meals that
can be purchased with food stamps. Best of all, each of these businesses is profitable, says

Kakkad, showing that making a profit and benefiting society are not mutually exclusive.

Kakkad loves to share such

BISOUX, T. (2019). PEOPLE, PLANET, PROFITS--PEACE: Showing students the power of

business to change the world for the better-or for the worse. BizEd, 18(5), 28–32.

Corporations wield immense power in our global society. Therefore, some organizational

scholars have argued that understanding the objectives of the corporation is the ‘‘most

important theoretical and practical issue confronting us today

A stakeholder-focused corporate objective encourages the active participation of a firm’s

stakeholders over time, and the success of these relationships determines the financial

fortunes of the firm

survey responses from 520 firms in 17 countries to find that when CEOs emphasize

stakeholder oriented values (in contrast to economically oriented values), employees were
more likely to perceive transformational leadership (rather than autocratic leadership) and

therefore expend extra effort in their work, which predicted firm performance. Additionally,

research on self-determination at work has established that ‘‘the experience of autonomy,

competence, and relatedness improves employee satisfaction and autonomous motivation,

which are themselves linked to retention and job performance’’

interacting with stakeholders rather than focusing on profits may provide richer feedback and

thus increase perceptions of competence. Recent research has shown that connecting

employees with the human beneficiaries of their work increases intrinsic motivation

Stakeholder theory highlights the idea that all core stakeholders have intrinsic worth, that

their concerns and interests should influence decision making alongside those of

shareholders, and that they ought to have a voice in the process (Donaldson and Preston

1995; Freeman 1984; Jones and Wicks 1999). It also emphasizes the importance of creating

and sustaining connections between the corporation and its stakeholders, not only as a good

thing to do but as vital to the success and performance of the firm

Parmar, B. L., Keevil, A., & Wicks, A. C. (2019). People and Profits: The Impact of

Corporate Objectives on Employees’ Need Satisfaction at Work. Journal of Business Ethics,

1, 13. https://doi-org.gbcprx01.georgebrown.ca/10.1007/s10551-017-3487-5

An increasing number of firms uses renewable energy with the intention to “combat climate

change” (Apple, 2018), “contribut[e] to the reduction of carbon [emissions]” (Nestle, 2018)
or “reduc[e] the environmental footprint” (Volkswagen, 2017). These public announcements

seem to suggest that these firms are motivated by environmental concerns when they buy

renewable energy, particularly considering that renewable energy is generally more expensive

than nonrenewable energy

This paper regards renewable energy use as a specific type of environmental CSR: it benefits

society through climate change mitigation while it generally does not provide direct benefits

to the firm (i.e. lower costs) and is not required by law.

renewable energy use can enable the firm to differentiate itself from competitors such that it

can serve consumers with a higher willingness to pay

CSR can be part of profit maximization when it enables product differentiation. In contrast to

firms active in markets with homogeneous goods, firms active in markets with differentiated

goods may be able to charge a higher price than competitors

in order to profit from CSR actions, the level of CSR needs to surpass a certain threshold for

otherwise the firm's stakeholders will not react in a profitable manner. Their argument is

based on a stakeholder argument, namely that a firm's capability to influence its stakeholders

depends on the level of CSR

, at high levels of CSR, a firm has the ability to influence its stakeholders because those

stakeholders will perceive social actions by the firm as credible and therefore respond in a

profitable manner (in this case “such actions are in consonance with the firms character”

The results appear to indicate that firms do not have objectives beyond maximizing profit,

and that firms are only willing to contribute to climate change mitigation through the

purchase of renewable energy when this contributes to the profit-maximization objective as

well.
Hulshof, D., & Mulder, M. (2020). The impact of renewable energy use on firm profit.

Energy Economics, 92.

https://doi-org.gbcprx01.georgebrown.ca/10.1016/j.eneco.2020.104957

some research, such as Bull (2012) and Liu et al. (2012), have shown that consumers are

willing to pay more for green, low-carbon, or environmentally friendly products. A report

from AliResearch suggests paying 33% more for green products is acceptable for green

consumers (AliResearch, 2016). Hence, consumers’ low-carbon preference (CLP) is a factor

that cannot be ignored when studying manufacturers’ emission reduction behaviors.

Liu, J., Ke, H., & Tian, G. (2020). Impact of emission reduction investments on decisions and

profits in a supply chain with two competitive manufacturers. Computers & Industrial

Engineering, 149. https://doi-org.gbcprx01.georgebrown.ca/10.1016/j.cie.2020.106784

Your company can benefit from tax breaks, government subsidies, savings from eco-friendly

practices, and increased popularity and demand through your standing as a green company.

So, whether you offer insurance or technology services, or you run a restaurant or dry
cleaning business, eco-friendly business practices are a cost-effective, smart and responsible

business goal.

INCREASED DEMAND FOR ECO-FRIENDLY GOODS TRANSLATES INTO MORE

PROFITS

Consumers are increasingly demanding natural products and social responsibility from

vendors and suppliers through sustainability and green practices. More importantly, many are

willing to pay more for these values and demands. The Nielsen global online survey this year

identified 66 percent of its worldwide study respondents with this commitment to

eco-friendly products, services and businesses

INCREASED SAVINGS FROM THE USE OF ORGANIC AND NATURAL MATERIALS

AND SMART ENERGY USE

Eco-friendly business measures naturally lead to savings. Practices such as energy

conservation, recycling, use of water-saving devices, energy-efficient equipment, solar power

and reduced waste help keep costs down, and have proven time and again to be far more

efficient and cost-effective than traditional energy use.

YOUR BUSINESS BENEFITS FROM THE POPULARITY OF A GREEN REPUTATION

Green companies and brands are typically more appealing to clients, customers and

employees, and this appeal is growing steadily. A company can increase sales to new

customers who prefer to purchase from green businesses. The Nielson global online survey

mentioned earlier supports this conclusion, as do numerous other studies and surveys that

track consumer trends. With workers and consumers alike recognizing and placing increasing

value on environmentally friendly products and companies, it makes good business sense for
every organization to explore this option. In fact, if you’re committed to green business

practices, it makes sense to apply for green certification, also known as sustainability

certification. Earn the certification seal will help your green marketing and promote your

achievements to your employees and customers

Financial Benefits of an Eco-friendly Business. (2019, June 17). Retrieved October 25, 2020,

from https://greenbusinessbureau.com/blog/financial-benefits-of-an-eco-friendly-business/

More and more studies are showing that the newest wave of potential talent heavily weigh the

values and culture of a company that they may end up working for, and therefore companies

will need to make this investment in order to recruit and retain the best talent available. As

well, embracing social impact is key to engaging a growing number of customers and

investors who care deeply about these issues. In an increasingly competitive business world,

customers have countless options for almost any service or product you could imagine - and

research shows that many will choose to buy from the companies whose values they most

align with.

Company founders and CEOs are increasingly being turned to as thought leaders and activists

with the influence and capital means to incite true social change. Now more than ever,

companies and their leaders are expected to take a stance on major political and social issues.
Therefore, company voices will get louder and stronger in 2019 due to increased social

pressures, an increase in the transparency of company practices demanded by consumers and

the growing attention to the current geopolitical environment.

social impact driven by business investment and leadership will increase exponentially

beginning in 2019 and continue well into the future - particularly with regard to gender parity,

which is one of the first areas that you’re seeing most companies who are making efforts in

social impact to be investing in and setting goals for.

Doerr, P. (2019, January 14). Four Ways Social Impact Will Affect Businesses In 2019.

Retrieved October 25, 2020, from

https://www.forbes.com/sites/patsydoerr/2019/01/14/four-ways-social-impact-will-affect-busi

nesses-in-2019/

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Huntington, S. (2018, October 08). How Businesses Can Be Environmentally Friendly and

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