TRIPLE BOTTOM LINE
Triple Bottom Line
TBL or 3BL or THREE PILLARS People Planet
Profit
Meaning
• Expanding the traditional reporting framework to take into account ecological and social performance in addition to financial performance • It captures values and citeria for measuring organizational success i.e. Economic, Social and Ecological
People
• Known as Human Capital • Fair and beneficial pratices towards labour, community or region • Not use child labour as well as monitor all contracted companies for child labour exploitation • It would pay fair salaries to its workers • Tolerable working hours • It would not otherwise exploit a community or its labour force
• TBL business also typically seeks to give back by contributing to the strength and growth of its community with such things as health care and education.
Planet
• Natural Capital • Refers to sustainable environmental practices. • TBL company endeavours to benefit the natural order as much as possible or at the least do no harm and curtail environment impact • Carefully managing its consumption of energy and non – renewable • Reducing manufacturing waste • Rendering wasteless toxic before disposing it in a safe and legal manner
• A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals. • Ecologically destructive practices or other endangering depletions of resources are avoided by TBL companies
• Often environmental sustainability is the more profitable course for a business in the long run.
Profit
• It is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. • In the original concept within a sustainability framework the profit aspect needs to be seen as the real economic benefit enjoyed by the host society • It is the real economic impact the organization has on its economic environment • This is often confused to be limited to the internal profit made by a company or organization
Arguments
• Reaching untapped market potential • Adapting to new business sectors
Criticisms
• • • • • • Division of Labour Effectiveness Nationalism Inertia Application Criticism from the left
doc_689053185.ppt
Triple Bottom Line
TBL or 3BL or THREE PILLARS People Planet
Profit
Meaning
• Expanding the traditional reporting framework to take into account ecological and social performance in addition to financial performance • It captures values and citeria for measuring organizational success i.e. Economic, Social and Ecological
People
• Known as Human Capital • Fair and beneficial pratices towards labour, community or region • Not use child labour as well as monitor all contracted companies for child labour exploitation • It would pay fair salaries to its workers • Tolerable working hours • It would not otherwise exploit a community or its labour force
• TBL business also typically seeks to give back by contributing to the strength and growth of its community with such things as health care and education.
Planet
• Natural Capital • Refers to sustainable environmental practices. • TBL company endeavours to benefit the natural order as much as possible or at the least do no harm and curtail environment impact • Carefully managing its consumption of energy and non – renewable • Reducing manufacturing waste • Rendering wasteless toxic before disposing it in a safe and legal manner
• A triple bottom line company does not produce harmful or destructive products such as weapons, toxic chemicals or batteries containing dangerous heavy metals. • Ecologically destructive practices or other endangering depletions of resources are avoided by TBL companies
• Often environmental sustainability is the more profitable course for a business in the long run.
Profit
• It is the economic value created by the organization after deducting the cost of all inputs, including the cost of the capital tied up. • In the original concept within a sustainability framework the profit aspect needs to be seen as the real economic benefit enjoyed by the host society • It is the real economic impact the organization has on its economic environment • This is often confused to be limited to the internal profit made by a company or organization
Arguments
• Reaching untapped market potential • Adapting to new business sectors
Criticisms
• • • • • • Division of Labour Effectiveness Nationalism Inertia Application Criticism from the left
doc_689053185.ppt