In economics, the triple bottom line (TBL) concept means that companies should place equal emphasis on the “three P’s”:
profit, people, and planet.
Since the dawn of our capitalistic economy, however, businesses have traditionally prioritized profit for its executives and shareholders—all at the expense of people and planet.
Similarly, the “three pillars of sustainability” call for:
economic viability, environmental protection, and social equity
in any given operation. And you guessed it, businesses more often than not choose economic viability over all else!
We must shift our mindset. Instead of putting our economic interests at the core of every business venture, we must see the economy as an entity that can only survive and thrive if it acts within the limitations of our natural and social worlds. No matter how huge and powerful a company may be, its profits can only endure sustainably if it takes into account the needs of people and the planet.
One theory that has emerged in response to rampant capitalism is that of
Doughnut Economics, which is “a visual framework for sustainable development—shaped like a doughnut or lifebelt—combining the concept of planetary boundaries with the complementary concept of social boundaries”. This theory was created by British economist Kate Raworth in 2017. By delineating the “ecological ceiling” and the” social foundation,” the Doughnut Model invites us to live within our planetary boundaries and ensure that everyone has their basic human needs met. It urges us to aim for the “the safe and just space for humanity.” Or in other words, the sweet spot.
Versions of this economic theory are already being implemented in cities like Amsterdam, Copenhagen, and Portland, and David Attenborough views it as “our compass for the journey” towards sustainability. Perhaps most importantly, this model implores us to question the prevailing norm of incessant, everlasting economic growth as the one and only path to human success and well-being.
Whether you’re a business owner, executive, shareholder, an average worker, or even a customer, it is vital that we urge companies to reassess their values and tend to their triple bottom line. They must look out for the people who form the backbone of both supply and demand, and they must take into account the planet that is the ultimate provisioner of all their resources and well-being.
Another great way to support the concept of the triple bottom line is to support B corporations!
Click here to access the B Corporation Directory. You might be delighted to see how many businesses are doing the right thing!
It should be common practice for companies to adequately compensate their workers. As the gap between executive and minimum-wage worker salaries rapidly grows wider and wider, it is only fair that top-level salaries take a cut so that all workers are paid fairly. Not only does this help their morale and productivity, but it has the power to lift them out of poverty and ensure their general well-being. If you would like more info,
check out this PDF.
While welfare systems like those of the nordic countries excel at this, the
United States is the only developed country without government-mandated parental leave AND the
only industrialized country without Universal Health Coverage for all. If you’re in the U.S., see this guide from the
New York Times
on
how to advocate for your Maternity or Paternity leave.
Humble leadership helps to cultivate a work environment where employees are free to share new ideas in low-risk spaces, where they receive the support that they need to manifest these ideas, and where ‘servant-leaders’ acknowledge that the well-being of the company is contingent upon that of its workers. So whatever your role at your workplace, work to create an open, accepting environment. Keep an open mind towards others’ ideas and experiences so you may work together to find solutions to meet your triple bottom line (of social, economic, and environmental sustainability)!
By taking into account the needs of all involved stakeholders (owners, customers, and employees), and making your voice heard if you belong to one of these groups, a business venture will be more fair and just. If customers form the core of a company’s demand, and employees dedicate their careers to a company, their needs should be weighted alongside those of top executives. As customers are demanding sustainable goods and services through leaving reviews and contacting company representatives, and minimum-wage workers advocate for their rights through demanding action from executives and their elected representatives, companies will soon have no choice but to listen!
Seeing as how a mere 100 companies are responsible for 71% of emissions, perhaps the best way to help humanity live within our planetary boundaries is to focus on implementing eco-friendly practices in our businesses. Think of all the different operations of a business (like travel, resource extraction, product manufacturing, packaging, distribution, energy and water use, etc.) and think of how they can be carried out in more efficient and less resource-intensive ways. This will range from actions that are easier to implement (like replacing business travel with Zoom meetings, eliminating single-use plastics, switching to biodegradable packaging, installing LED lights and dual-flush toilets at the workplace, etc.) to actions that call for more fundamental changes (such as switching to local distributors, converting to renewable energy sources, switching to a Cradle to Cradle model of production, etc.).
Even if you’re not some powerful executive, keep in mind that you too can inspire change in how businesses are run! A
Deloitte Resources study conducted in 2020 found that two-thirds of analyzed companies reported that customers were demanding that they switch to renewables, and half said they were actually implementing these changes.
So remember, you voice matters!
This whiteboard animation video presents the concept of the triple bottom line and uses science to suggest a different way to look at it.
Today more than ever communities and consumers are homesick for a version of capitalism that we can trust. Companies that value people over profit are more profitable as they honor the hunger we have for ethical business practices.
Creating Employment, improving the environment and thereby developing the economy by reducing the economic differences and making the world a happy place to live in with equality and justice; thereby the importance of socially responsible business models was what shaped Mrs Mayura Davda Shah’s talk
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