Triple Bottom Line

Question

1. What are some effects that Triple Bottom Line business practices could have on a community?
2. Can you name any businesses that communicate their interest in people and planet as well as profit?
3. What ads or social media postings have you seen that focus more on a company’s environmental practices than on its products?

Answer 1

The Triple Bottom Line (TBL) is a framework that integrates three dimensions of performance: social, environmental, and financial. This differs from traditional reporting frameworks as it includes environmental and social measures that can be difficult to assign appropriate means of measurement.

Effects on a Community:

Economic Stability: By focusing on profit alongside the other two metrics, TBL businesses can contribute to local economies, provide stable jobs, and offer fair wages.

Environmental Health: Emphasis on environmental sustainability can lead to cleaner air and water, reduced waste, and conservation of local natural resources.

Community Development: A focus on people ensures that businesses support community programs, prioritize employee well-being, and possibly even fund local education or health initiatives.

Cultural Preservation: TBL businesses may emphasize the importance of local customs, traditions, and histories, helping to preserve and celebrate them.

Enhanced Reputation: Such businesses are often held in higher esteem in the community due to their broader contribution, which can lead to increased local support and loyalty.

Businesses with a Focus on TBL:

Patagonia: This outdoor clothing company has long been dedicated to environmental and social responsibility. Their mission statement even reads: “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis.”

Ben & Jerry's: The ice cream company is known for its commitment to social justice, environmental sustainability, and economic responsibility.

The Body Shop: Famed for its ethically-sourced products, it was one of the pioneers in the corporate social responsibility movement.

Eileen Fisher: This clothing brand focuses on sustainability and social responsibility in its production processes.

Ads or Social Media Postings Focusing on Environmental Practices:

Apple: Apple's "Earth Day" campaigns often highlight the company’s efforts to reduce its carbon footprint and use recycled materials. For example, in past ads, they have emphasized their commitment to becoming 100% carbon neutral.

Coca-Cola: The company has run campaigns about their efforts to recycle plastic bottles and their goal towards a "World Without Waste".

Adidas: In collaboration with Parley for the Oceans, Adidas has produced and promoted sneakers made out of recycled ocean plastic, showcasing their commitment to reducing ocean pollution.

Unilever: With numerous brands under its umbrella, Unilever frequently emphasizes its sustainable sourcing practices, reduced plastic use, and other environmental initiatives in its advertisements.

Companies today are increasingly communicating their TBL commitments as consumers become more conscious about the ethical and environmental impacts of their purchases. This trend will likely continue as societal expectations and regulatory pressures shift towards more sustainable and responsible business practices.