What is the triple bottom line philosophy?
Triple bottom line (TBL), in economics, believes that companies should commit to focusing as much on social and environmental concerns as they do on profits. TBL theory posits that instead of one bottom line , there should be three: profit, people, and the planet.
What do the three bottoms of the triple bottom line mean?
As Elkington explains, “the triple bottom line is a sustainability framework that examines a company’s social, environment, and economic impact.” “ The original idea was () encouraging businesses to track and manage economic (not just financial), social, and environmental value added—or destroyed.”
What is the triple bottom line and why is it important?
Triple bottom line thinking holds that a company should combine standard metrics of financial success with those that measure environmental stewardship and social justice. It is sometimes called the 3P approach — People, Planet and Profits.
How do you do the triple bottom line?
Five ways businesses can achieve the triple bottom line through sustainability Adapt to local context. Seek New Business Opportunities. Share Risks. Work with Nature, Not Against It. Mitigate Risk.
What are the 3 P’s of sustainability?
The 3Ps of sustainability are a well-known and accepted business concept. The Ps refer to People, Planet, and Profit, also often referred to as the triple bottom line.
What are the 3 pillars of sustainability?
The figure at the top of this page suggests that there are three pillars of sustainability – economic viability, environmental protection and social equity.
What are the benefits of triple bottom line?
Seven Business Case Benefits of a Triple Bottom Line – Tenth Anniversary Edition Increase revenue. Reduce energy expenses. Reduce waste expenses. Reduce materials and water expenses. Increase employee productivity . Reduce hiring and attrition expenses. Reduce strategic and operational risks.
Is Amazon a triple bottom line company?
Amazon paid $13.4 billion. According to Environmental Leader, “ Companies that focus on the so-called triple bottom line — economics, environment and social—are the ones that consistently do well by all standards.
What is a triple bottom line example?
Triple bottom line companies make an effort to “give back” to the community. For example , 3M partners with United Way to fund STEM education across the world. This initiative is an example of “enlightened self-interest”—acting to further the interests of others, ultimately, to serve one’s own self-interest.
What are the 3 components of the triple bottom line?
The Triple Bottom Line Defined. The TBL is an accounting framework that incorporates three dimensions of performance: social, environmental and financial.
What companies use triple bottom line?
Although the phrase was coined over 25 years ago, the triple bottom line approach to business — which is used by some of the world’s biggest companies , including General Electric, Unilever and Procter & Gamble — has only recently been gaining traction across industries as consumers become more interested in
What are the 4 factors of sustainability?
However, it actually refers to four distinct areas: human , social , economic and environmental – known as the four pillars of sustainability. Human sustainability aims to maintain and improve the human capital in society.
Why are the 3 pillars of sustainability important?
Sustainability creates and maintains the conditions under which humans and nature can exist in productive harmony that permit fulfilling the social, economic, and other requirements of present and future generations.”
How can I improve my bottom line?
Ten Strategies to Improve Your Bottom Line Adjust your pricing. Cut down on expenses. Reduce interest payments. Look for new opportunities. Learn to fail quickly. Work smart. Utilize the power of a mentor. Actively reach out to potential customers.
What is the bottom line?
The bottom line refers to a company’s earnings, profit, net income, or earnings per share (EPS). The reference to bottom line describes the relative location of the net income figure on a company’s income statement. A company that is growing its earnings or reducing its costs is said to be improving its bottom line .