ENTREPRENEURSHIP

ASSIGNMENT # 01

SOCIAL ENTREPRENEURSHIP: TRIPLE BOTTOM

APPROACH.

SUMAIYA RANA 02-111211-134

SUBMITTED TO: SIR UBED AMJAD ALI

BBA-5E

DATE: 26-03-23
 SOCIAL ENTREPRENEURSHIP: TRIPPLE
BOTTOM APPROACH
The triple bottom line is a business concept that posits firms should commit to
measuring their social and environmental impact—in addition to their financial
performance—rather than solely focusing on generating profit, or the standard
“bottom line.” 
Historically, businesses operated in service solely to their financial bottom line. In
1994, author and entrepreneur, John Elkington, introduced the concept of the triple
bottom line (TBL) with hopes of transforming the financial accounting-focused
business system to a comprehensive approach that measures impact and success.
As a result of the triple bottom line theory and application, some businesses began
to recognize the connection among social well-being, environmental health, and an
organization’s financial success and resilience. To get an accurate perspective of
their operations, beyond what is reflected in their profit and loss statements,
organizations must fully account for all costs associated with doing business by
going beyond compliance.
“The triple bottom line wasn’t designed to be just an accounting tool. It was
supposed to provoke deeper thinking about capitalism and its future.”

—John Elkington in his Harvard Business Review article.

Facts about the triple bottom line:

 It is a transformation framework to help businesses and organizations move toward
a regenerative and more sustainable future.
 TBL offers tools that help an organization measure, benchmark, set goals, improve,
and eventually evolve toward more sustainable systems and models.
 It illustrates that if an organization is only focused on profit, while ignoring people
and the planet, it cannot account for the full cost of doing business and thus will
not succeed long term.

Triple bottom line theory expands conventional business success metrics to include
an organization’s contributions to social well-being, environmental health, and a
just economy. These bottom line categories are often referred to as the
“P’s”: people, profit, planet, and prosperity. While there are categories that make
up the triple bottom line, it is important to remember they are not siloed. Through a
systems theory lens, the three “P’s” are all interconnected.

VARIABLES OF TRIPPLE BOTTOM LINE APPROACH

PROFIT:
In a capitalist economy, a firm’s success most heavily depends on its financial
performance, or the profit it generates for shareholders. Strategic planning
initiatives and key business decisions are generally carefully designed to maximize
profits while reducing costs and mitigating risk.

In the past, many firms’ goals have ended there. Now, purpose-driven leaders are
discovering they have the power to use their businesses to effect positive change in
the world without hampering financial performance. In many cases, adopting
sustainability initiatives has proven to drive business success.

PEOPLE:

The second component of the triple bottom line highlights a business’s societal
impact, or its commitment to people.

The connection with corporate social responsibility (CSR) is central to this

segment of the triple bottom line. CSR is defined as a responsibility among
organizations to meet the needs of their stakeholders and a responsibility among
stakeholders to hold organizations accountable for their actions.

Some simple ways companies can serve society include ensuring fair hiring
practices and encouraging volunteerism in the workplace. They can also look
externally to effect change on a larger scale. For instance, many organizations have
formed successful strategic partnerships with nonprofit organizations that share a
common purpose-driven goal.
PLANET:
The final component of the triple bottom line is concerned with making a positive
impact on the planet.

Since the birth of the Industrial Revolution, large corporations have contributed a
staggering amount of pollution to the environment, which has been a key driver of
climate change. A recent report by the Carbon Majors Database found that 100
companies in the energy sector are responsible for roughly 71 percent of all
industrial emissions.

While businesses have historically been the greatest contributors to climate change,
they also hold the keys to driving positive change. Many business leaders are now
recognizing their responsibility to do so. This effort isn’t solely on the shoulders of
the world’s largest corporations—virtually all businesses have opportunities to
make changes that reduce their carbon footprint. Adjustments like using ethically
sourced materials, cutting down on energy consumption, and streamlining shipping
practices are steps in the right direction.

PROSPERITY:

It ensure all human beings can enjoy prosperous and fulfilling lives and that
economic, social, and technological progress occurs in harmony with nature. One
of the many prosperity-focused goals aims to provide decent work (safe working
conditions, living wages, and compassionate leadership) and economic growth for
those in specific communities. Some companies, like Kohler Co., have taken a
systemic approach to integrating prosperity into its business:

“As a global company, we understand that how we do business impacts the

communities in which we live and work… We believe that in order to grow our
business responsibly, we must have programs in place that positively impact the
environment and society as scale.”
WHY IS THE TRIPLE BOTTOM LINE IMPORTANT?
Triple bottom line is important because it affects everyone. It does not just focus
on business and corporate leaders, but also social communities and the business's
impact on the planet.

This accounting framework provides:

 A more sustainable future that considers both social and environmental

sustainability.
 Methods to set goals and measure and improve sustainable systems.
 New ways to generate profit, such as attracting new customers who want to
lessen their impact on the environment.
 A healthier work environment that focuses not only on employees, but the
organization's standing in its surrounding social environment.

Business Benefits of Triple Bottom Line:

Organizations that practice the triple bottom line may reap benefits such as:

 Reduced energy consumption and carbon footprint by focusing on the

environment.
 Higher employee retention rates by making the work environment more
pleasant for workers.
 Enhanced brand perception and reputation by showing others the organization
stands for more than just making profits.
 Improved productivity and reduced costs through sustainability efforts.
 Increased transparency and accountability of operations, potentially attracting
new investors.
 THE CHALLENGES FOR SOCIAL ENTREPRENEURSHIP
IN PAKISTAN
Absence of Institutional Environment:
The promotion of Social Entrepreneurship is not possible without a solid
institutional environment which facilitates and motivates people to embark
upon a new journey. Institutional environment can only be created if the
government recognizes and understands the potential role
Absence of Social Entrepreneurship Education:
Social entrepreneurship is still a “new cup of tea” for many educational and
technical institutions of the country. Education can be the best source for
producing Social Entrepreneurs. There are courses offered on Business
Entrepreneurship but there are no examples of specific curriculum on Social
Entrepreneurship. It is mainly due to knowledge gap among key stakeholders
about the concept of Social Entrepreneurship. Due to this gap in the education
and technical institutions, social entrepreneurship sector is still underdeveloped
and struggling. This lack of Social Entrepreneurship knowledge presents the
major stumbling block in creating a rising generation of Social Entrepreneurs.
Absence of Government Support:
The government support in the field of Social Entrepreneurship is virtually
little. It is mainly due to the knowledge gap in the field of Social
Entrepreneurship. Considering the social and economic challenges being faced
by the country, Social Entrepreneurship could be the most promising strategy to
deal with these challenges. There is a dire need to create conditions at both
micro and macro levels by the government to pave the way for Social
Entrepreneurship in Pakistan.
Lack of Donors’ Support:
Donors and international organizations are playing a very important role in
meetings the unmet service needs of our society. There are very few donor and
international organizations which are pushing forward the agenda of social
entrepreneurship in the country. The concept of Social Entrepreneurship is not
new for the public and private organizations but it is also very new for many of
the donor and international institutions.
Lack of Skilled Manpower:
Social Enterprises do not have the luxury of hiring the most talented and the
most educated people from the society. They have to focus primarily on
identifying people from low-income and disadvantaged families with less
education or no experience. It takes a lot of time and effort to train these people
which in fact presents the biggest challenge as Social Enterprises have to
realize their mission in a holistic manner (social, financial and environmental)
regularly.
Social and Cultural Values:
Social and cultural values in the rural areas sometimes create problems for
Social Enterprises to operate. Due to the mushroom growth of NGOs and
charity based organizations in Pakistan, people are very reluctant to pay even a
low cost for any services. It reflects the lack of knowledge of the local
communities in distinguishing between NGOs and Social Enterprises.
Little or No Research:
It is very unfortunate that there is hardly any data available pertaining to the
Social Entrepreneurship field in Pakistan. It is perhaps the reason that Social
Entrepreneurship has been facing greater challenges in seeking the greater
attention from the different sectors.
Lack of Financial Support:
Lack of financial support is one of the biggest challenges being faced by the
Social Entrepreneurs. Very often, the Social Entrepreneurs run their enterprises
with their own resources. The reason behind it is the absence of provision of
loans on easy conditions from the banks. Since Social Entrepreneurs operate in
low or poor market conditions, hence, it is very challenging for them to
generate resources from their activities in the beginning.
 OPPORTUNITIES FOR SOCIAL ENREPRENEUSHIP IN
PAKISTAN
Social Entrepreneurship as a Means of Job Creation or Employment
Opportunities:

The slow growth and fluctuating economy of Pakistan and the security situation
due to which very few foreign investors are willing to invest in the country
together result in the worrying condition of the economy and limited availability of
jobs in the market. If there is no investment, there will be no jobs in the market.
This means that SE creates opportunities and employment for youngsters and
graduates. Meanwhile, it also facilitates social entrepreneurs and practitioners in
their innovative and creative ideas for making social impact on the society, rather
than relying on donations and funding only.
Shift from the Humanitarian and Charitable Approach towards Social
Entrepreneurship:
Rather than relying on governmental and charitable models, practitioners are now
moving towards sustainable development solutions and models. There is a change
in trends and societies are now moving from the humanitarian and charitable
dimensions towards SE.
Donors’ Funding Preference and Investment in Social Enterprises:
Many donors or funding organizations prefer social enterprises who are
sustainable enough or alternatively, sustainable ideas of social entrepreneurs to
invest in. They do not intend to give donations but aim to invest in them for long-
term prospects.
The interest and preference of foreign and donor organizations in SE in Pakistan
and people are coming forward with social ideas to make a social impact. This will
help SE to flourish and prosper in Pakistan.
Social Enterprise Ecosystem Development:
SE ecosystem can help social enterprises to flourish and make a sustainable impact
if support is given in this regard. For this purpose, resource labs are there to assist
social startups and entrepreneurs by connecting them with donors and funders and
assisting them in marketing, financial and legal aspects so that they can become
sustainable and viable enough.
Social Entrepreneurship – Shattering the Dependency on Government and
NGOs

The shift from humanitarian and charitable organizations, that is, NGOs and CSOs
towards SE has already started happening. Keeping in view the state of the
government and the prevailing economic scenario, SE has already started
happening and is flourishing. People no longer depend on the government and
NGOs. The government should recognize the importance of SE and the sustainable
impact it can create

CONCLUSION:
Social entrepreneurship is a new and emerging field in Pakistan. Social
entrepreneurship is a field that provides young professionals with opportunities to
create long-term societal and economic value. While this paper provides not only a
broad overview of social enterprise activity in Pakistan, it also includes
recommendations for further research. It has identified a number of key issues and
opportunities for the future development of social entrepreneurs, some of which
are broadly applicable to or similar in other countries, while others are unique to
Pakistan.