Corporate of Social Responsibility (CSR) AND Triple Bottom Line (TBL)
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FixedFF.docxTriple Bottom Line (TBL)
The triple bottom line is a theory or framework that advocates that entities emphasize on environmental and social issues just as they do on financial profits. Traditionally, company leaders concerned themselves more with the profits their companies made. Nowadays, leaders have started to think about sustainability. TBL, therefore, extends the traditional accounting theory to include two other areas: the environmental and social impact of the company (Fernandes, 2020). The three bottom lines are people, planet, and profit.
Mention about the role of Global Reporting Initiative (GRI)
People
Entities that use the TBL framework always think about the effect their actions and practices have on the people involved with them. This includes customers, vendors, community, and employees. TBL companies try hard to provide quality healthcare benefits, opportunities for educational and professional advancement, flexible working schedule, and a safe working environment. These companies also try as much as they can to help the community. For instance, 3M collaborates with United Way to support STEM education all of the world.
Planet
Entities that use the TBL framework work to decrease their ecological footprint (Hammer, & Pivo, 2017). They always know that the lesser impacts the company has on the environment, the longer the company can operate. According to Fernandes (2020), this can entail not manufacturing products that are unhealthy or unsafe to the people and the planet. It also includes lessening emissions, waste, and consumption. For instance, Apple Company has invested hugely in environmental sustainability. In 2016, Apple announced that ninety-three per cent of its energy is generated from renewables (wisconsin.edu). This action has pushed other companies such as Google and Facebook toward using renewable sources.
Profit
All entities are always concerned about their financial position, however, companies committed to TBL views profits in terms of what they can do to generate more profits and how they can assist the community at large. These companies also know that profit is not completely opposed to planet or people. IKEA, a furniture giant, made sales of about $37.6 billion in 2016. The entity also obtained profit by converting waste into some of its popular products in the same year. Before all this, the waste had cost the entity over one million dollars every year. This practice has, therefore, enabled the company to save money and reduce cost. Good you have support your argument with relevant examples
Advantages and Disadvantages of Triple Bottom Line
Triple bottom line is beneficial. When an organization look after its people: suppliers, communities, customers, and employees, it is likely to have fewer disputes, more loyal customers, and fewer employees’ turnover. If an organization look after the planet, the company is likely to utilize fewer resources and reduce cost. This can also result in less pollution and less regulatory issues. Can able to discuss more on the advantages of TPL reporting
Triple bottom line, however, has some drawbacks. Out of the three P’s of the TBL, only one is easily measurable. Profits can be measured but it is not easy to measure social and ecological/environmental aspects. It is also difficult to put an exact dollar amount on every benefit of a company’s effort. For instance, it is hard to ascertain the benefits of reducing a company’s CO2 emission. (Fernandes, 2020). Can improve further
