The Triple Bottom Line, Business Strategy and Environment
The triple bottom line (TBL) is the concept of building a business widely used in the modern circumstances to create an efficient entrepreneurship. Entrepreneurs and managers should be aware of not only financial indicators but also the social and environmental results of the company’s activities (Isil & Hernke, 2017). According to the notion, business is built on the three pillars of sustainable development – the planet, people, and profit.
While commercial companies consider financial success the leading indicator of efficiency, companies with a TBL approach consider it only part of a business plan. Social enterprises also strive to make a profit and develop their projects. In this case, income is necessary to fulfill a social mission. Another component of the concept is people, which encompasses both employees working on the project and society as a whole. A company that follows the TBL concept pays fair wages and takes measures to ensure decent working conditions. Another indicator of a socially responsible company is that it provides the public with complete information about its products and services and implements client-oriented approaches (Kinicki & Soignet, 2021). Clients also share a belief in the company’s social mission and can play an active role in the proposed solutions to various tasks. As far as it concerns the planet, large enterprises should invest in renewable energy sources, manage natural resources more efficiently and improve logistics (Isil & Hernke, 2017). The company can choose to package from recycled materials or use environmentally friendly resources to manufacture its products.
Millennials can make the TBL concept a core business value because they often look for a balanced approach towards everything. They are purpose-driven individuals capable of maintaining social responsibility and making drastic changes (Kinicki & Soignet, 2021). This generation is sincerely committed to societal issues, and they attempt to internalize the ideas of environment preservation, justice, and equality. These people can force businesses to be more sustainable and more ecological.
Isil, O., & Hernke, M.T. (2017). The triple bottom line: A critical review from a transdisciplinary perspective. Business Strategy and The Environment, 26, 1235-1251.
Kinicki, A., & Soignet, D. (2021). Management: A Practical introduction (10th Ed.). McGraw Hill.