Week 1 – Chapters 1 & 2
Why do some business firms pursue a triple-bottom-line outcome while others focus only on profit maximization? Please, use a real company example to illustrate your points. The triple bottom line outcome focuses on the concept where firms are environmentally conscious and socially responsible by achieving a balance between profits, avoiding damage to the environment, and achieving social benefits (Douglas, 2012). Traditionally, firms focused on profit maximization to achieve profits to pay out dividends and capital gains so shareholders can buy things. In a recent article, Nursing Homes are overbilling Medicare $1.5 billion a year for treatments patients don’t need or never receive. When nursing homes where for-profit, 30% of claims sampled were considered improper while non-profit nursing homes estimated only 12% (Waldman, 2012). Jill Horwitz, a professor at the University of California stated that for-profit health care providers are more likely to pursue money in any way possible, even by pushing the legal envelope (Walkman, 2012). There are still for-profit companies who pursue a triple-bottom-line outcome. Campbell Soup Company has been environmentally conscious and socially responsible since 1953. The Campbell Soup Foundation has been supporting local communities where employees live and work financially. Campbell Soup’s headquarters is located in Camden, New Jersey where they donate approximately $1 million each year to impact the local residents in a positive manner (Campbell Soup Foundation). They focus on hunger relief, childhood obesity and youth-related programming. Not only does Campbell Soup invest in its local communities, they also partner is many non-profit organizations like the Boy & Girls Club and the United Way. Customers can influence firms to pay more attention to the preservation of the natural environment by emphasizing how important the community and environment in which they live are....
References: Douglas, E. (2012). Managerial Economics (1st ed.). San Diego, CA: Bridgepoint Education.
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