Triple Bottom Line

TBL
Traditionally : Four Categories

• Based on interests and connections of external relations

• Between stakeholders and shareholders
• How they view & expect realization of sustainable development
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• Environmental Responsibility
• Ethical Responsibility
• Philanthropic Responsibility
• Economic Responsibility
• Main goal of company is to create profit
• Fundamental task of management is to find solutions
• In order to increase continually this profit
• New business wisdom: Create social values
: Create competitive advantage for company
• Great mission statements should be simple and emotive
• Great mission statements should be lofty…almost transcendent
• Great mission statements should be plausible and within reach
• Great mission statements should be authentic
• Great mission statements should speak to a higher purpose
• Great mission statements should be a reflection
Concept

• Entrepreneur and business writer John Elkington in 1994

• Companies should focus as much on Social and Environmental issues

as they do on profits

• 03 dimensions: : Social, Environmental and Financial

• 03 facets can be summarized as "People, Planet, and Profit"

Meaning

• Triple bottom line is a business concept

• Posits firms should commit to measuring Social & Environmental

• Addition to financial performance

• Rather than solely focusing on generating profit, or standard

“bottom line”
TBL Measures ?

• People: Measures company's social responsibility, both in workplace

and community

• Planet: Establishes business practices that reduce enterprise's

environmental footprint

• Profits: Refers to traditional cost accounting reporting

Achieve Triple Bottom Line ?

• Adapt to local context

• Seek New Business Opportunities

• Share Risks

• Work with Nature, Not Against It

• Mitigate Risk
People ……………
• Pertains to fair & beneficial business practices toward labour /
community
• Conceives reciprocal social structure in which well-being are
interdependent
• Seeks to provide benefit to constituencies & not to exploit / endanger
• "Up streaming" of portion of profit to original producer of raw materials
• Not use child labour
• Pay fair salaries to workers
• Maintain safe work environment
• Tolerable working hours
• Contributing to strength & growth of community
Planet ……

• Environmental sustainability
• Refers to sustainable environmental practices
• Endeavors to benefit natural order
• Minimize environmental impact
• Reduces ecological footprint 
• Managing consumption of energy & non-renewables
• Reducing manufacturing waste
• Rendering waste less toxic 
Profit ………

• Economic value created by organization

• After deducting cost of all inputs

• Differs from traditional accounting within sustainability framework

• Real economic benefit enjoyed

• Economic impact organization has on economic environment