BUS 640 Week 1 Responses

Firm Objectives

Read the articles Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.) and The bottom line of corporate good (Links to an external site.).  In reference to the articles, discuss how firms incorporate the triple bottom line concept into traditional business concerns over profitability. Respond to at least two of your classmates’ posts. Guided Response: In 300 words or more, please, provide your response to the above discussion question. Comment on how customers can influence firms to pay more attention to the preservation of the natural environment. Respond substantively to at least two of your classmates’ postings. Substantive responses use theory, research, and experience or examples to support ideas and further the class knowledge on the discussion topic.

Respond to Heather Petree Post

The triple bottom line is defined as "a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits" (Kenton, 2019, para. 1). The article "Jessica Alba's Triple Bottom Line Startup Raises $25 million" discusses Jessica Alba's reasons behind founding The Honest Company. She along with Christopher Gavigan founded The Honest Company to provide non-toxic, environmentally-friendly products for babies and families. As a mother of two, she realized there is a challenge with finding baby products without some type of toxic substance. Although The Honest Company has made a profit, the business was founded due to Alba's environmental concerns.

The triple bottom line theory consists of three bottom lines which are profit, people, and the planet. Profits represent the profit and loss associated with corporate profit. People represent the social responsibility of an organization. The planet represents how environmentally responsible firms are (Kenton, 2019, para. 3). In Alba's case, she felt socially responsible to create products that are better for children to use. Her products are non-toxic which represents environmental responsibility. Firms incorporate the three bottom lines mentioned. Her business announced a 25 million financing round with 52 million in total funding (Field, 2013, para.1). Based on these figures, The Honest Company is making a profit as well. 

Customers can influence firms to pay more attention to environment preservation by patronizing more companies who are intentional about protecting the environment. The Honest Company is one of those companies as the company provides a code of conduct to its suppliers. If suppliers do not comply with the code, The Honest Company does not use the supplier. The code of conduct ensures that suppliers comply with "human rights and environmental and documentation standards" (Field, 2013, para. 5).  Also, customers can discontinue the purchase of products with harmful chemicals if companies refuse to reformulate and/or remove the products from stores.

Field, A (2013). Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/

Kenton, W. (3 May 2019). Triple Bottom Line (TBL). Retrieved from https://www.investopedia.com/terms/t/triple-bottom-line.asp

Respond to Julian Jones Post

The triple bottom line (TBL) consists of three key pillars for success in business and recommends businesses focus more than just profit. “There’s more to a business that just money (Forbes, 2019).” This approach reflects businesses focusing on people, plant, and profitability. Those that adopt the TBL believe that if they prevail in all three of these aspects, they are promoting a well-rounding business. Personally, I think the TBL approach is great and helps manage a company on more than just profit. That’s not to say profit isn’t important but incorporating people and planet into a business model can bring more profit.

The natural environment plays into the planet aspect of the TBL approach. Companies that want to prevail in this aspect may sell certain products or promote “green”. Jessica Alba does this by selling non-toxic, eco-friendly products for babies their families. This product is great for the environment which some consumers are checking for before purchasing a product. She is very serious about this pillar to the point she has turned down business from suppliers that do not comply with her business model.

Customers can influence a business to pay more attention to the preservation of the natural environment by taking action. As stated, customers are able to influence change by taking advantage of their power in the market. The popularity increase of organic food took the consumer market by storm and forced businesses to change. Once consumers changed their minds and collectively started purchasing organic foods, all businesses in the food market took notice. Most of them were forced to change with the times just to keep up with the masses. Consumers can also take action through social media platforms like Facebook and Instagram. There have been many social media groups that have been started to support and go against certain things going on in society.

References:

Douglas, E. (2012). Managerial Economics . [Electronic Version] Retrieved September 9, 2019 from https://content.ashford.edu (Links to an external site.)

Field, A (2013). Jessica Alba’s Triple Bottom startup raises $25 million (Links to an external site.) (Links to an external site.). Forbes. Retrieved from http://www.forbes.com/sites/annefield/2013/11/17/jessica-albas-triple-bottom-line-startup-raises-25-million/

Scott, R. (2012). The bottom line of corporate good (Links to an external site.) (Links to an external site.). Forbes. Retrieved from