External Factor Analysis & Essay

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Importance of triple bottom line

The companies that make use of the triple bottom line increases the success of a company. The companies are more effective and the company has increased the competitiveness of the company and also its innovation. The triple bottom line also ensures that a company leaves the environment better than it found it. These shows that the company is ethical, has integrity and cares about the society and their employees.

The triple bottom line also enables a company to determine its success in more ways than in financial aspects only. The sustainability of the company also increases as a result. The companies adapt sustainable practices. The company is able to meet the demands of the current generations while taking into account the future generations (Burnham, 2015).

Three frameworks of the triple bottom line

The three folds of the triple bottom line is the:

Financial return

This is the profitability of the company, the management of the company is tasked with creating wealth for the shareholders. The shareholders invest their money into the company with the hope of gaining more wealth from it. The company using the bottom line ensures that is efficient therefore reducing its costs and increasing its profitability.

Social Impact

The companies are involved in various programs that are intended on leaving a good impact on the society. Companies have different programs that they are involved in. this include sponsorship of programs that are meant to mentor the youth, programs for providing food and clothing for the poor and health based programs such as a heart run.

Environmental responsibility/sustainability

This are activities that ensure the company has near zero impact on the environment. The companies adopt various programs that are meant to increase their environmental sustainability. The companies use solar in order to reduce its use of unsustainable energy. The companies can also reduce their waste by making use of the effective equipment.

What does the triple bottom line mean for a company?

Triple bottom lines has an impact for companies. The companies have to concentrate on other factors beside their financial aspect. This include social impact and environmental sustainability. The companies are therefore concentrating its sustainability.

How does your company specifically address the triple bottom line?

Target Company is involved in a program that support education. The company supports over 120,000 schools. The company has been able to donate 8.2 million books and has renovated 200 libraries.

The company also has program that is meant to reduce its emission 10 percent by the year 2020. The company also aims on empowerment of females and so far 46percent of the leadership positions are held by females. The company has also contributed to the Kid Power program that aims to reach the needy students (Diversity Inc., 2015).

References

Burnham, J., (2015). Why the triple bottom line is important. Retrieved from