Compatibility of Profit, People and Planet

Topics: Sustainability, Triple bottom line, Economics Pages: 4 (1161 words) Published: June 25, 2011
Definition: What is Triple bottom line? - A stool is stable only if it has three legs The triple bottom line (abbreviated as "TBL" or "3BL", and also known as "people, planet, profit" or "the three pillars”) captures an expanded spectrum of values and criteria for measuring organizational (and societal) success: economic, ecological and socia"People, planet and profit" succinctly describes the triple bottom lines and the goal of sustainability. "People" refer to employees, shareholders, customers, suppliers, workers, team who pertains to fair and beneficial business practices toward labour and the community and region in which a corporation conducts its business. A TBL company conceives a reciprocal social structure in which the well-being of corporate, labour and other stakeholder interests are interdependent. A triple bottom line enterprise seeks to benefit many constituencies, not exploit or endanger any group of them. The "upstreaming" of a portion of profit from the marketing of finished goods back to the original producer of raw materials, i.e., a farmer in fair trade agricultural practice, is a common feature. In concrete terms, a TBL business would not use child labour and monitor all contracted companies for child labour exploitation, would pay fair salaries to its workers, would maintain a safe work environment and tolerable working hours, and would not otherwise exploit a community or its labour force. A 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. Quantifying this bottom line is relatively new, problematic and often subjective. The Global reporting initiative (GRI) has developed guidelines to enable corporations and NGOs alike to comparably report on the social impact of a business. "Planet" (natural capital) refers to sustainable environmental practices. A TBL company endeavors to benefit the natural order as much as possible or at the...
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